The Japanese the Commercial Code specifies a statutory interest rate of 6% annual to be applied between merchants when no interest rate is specified in the contract. If two business partners agree to a loan in their contract, but neglect to specify an interest rate, the court will automatically set the rate at 6%.
In the absence of an agreement stating otherwise, an interest rate of 6% will also be used by courts when ordering the payment of a debt or damage award. Of course, if the parties decide to settle, they can specify a different interest rate as long as it is lower than the maximum interest rate allowed under Japanese law.
If you have any questions about contracting in Japan, please contact our office to set up a legal consultation.