Improving the mechanisms of legal regulation of interest rates in credit agreements with small and medium-sized businesses

This article examines problematic issues of legal regulation of fixed and variable interest rates in credit agreements with small and medium-sized businesses, analyzes the practice of using ex ante tools to control contractual conditions in terms of the amount of interest rates on loans. The purpose of the article is to study the theoretical provisions and practical problems of the legal regulation of interest rates in credit agreements with small and medium-sized businesses, as well as to formulate scientifically sound proposals aimed at improving the norms of credit legislation. Conclusions. Based on the methodology of economic analysis of law, the author substantiates the position that the normatively established maximum allowable values of floating interest rates should be extended to all categories of small and medium-sized businesses. It is advisable to use similar rules for loan agreements with a fixed interest rate, the amount of which can be adjusted unilaterally by the lender. Among other things, it is necessary to consolidate in the law the obligation of credit institutions to reduce interest rates by a certain amount, depending on the key rate of the Central Bank of Russia. The author believes that it is advisable to oblige credit institutions to inform the borrower, a small and medium-sized business entity, about the final cost of loan payments and its internal structure before concluding a loan agreement, in case the fixed or floating interest rate increases to its maximum allowable regulatory values. Additionally, the author has investigated some problems of commercial loan enforcement. The study of judicial arbitration practice allows us to conclude that currently there are two diametrically opposed approaches regarding the possibility of judicial reduction of the interest rate on a commercial loan. The author proposes to eliminate legal uncertainty by making appropriate additions to article 823 of the Civil Code of the Russian Federation.

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Publication Details

Journal
Economic problems and legal practice
Published
2025-09-28
DOI
https://doi.org/10.33693/2541-8025-2025-21-4-87-98
Primary Topic
Economic Development and Digital Transformation
Type
article
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Improving the mechanisms of legal regulation of interest rates in credit agreements with small and medium-sized businesses

Evgeniy О. Barashkov
Economic problems and legal practice
Economic Development and Digital Transformation
article

Improving the mechanisms of legal regulation of interest rates in credit agreements with small and medium-sized businesses

Evgeniy О. Barashkov
article en

Abstract

This article examines problematic issues of legal regulation of fixed and variable interest rates in credit agreements with small and medium-sized businesses, analyzes the practice of using ex ante tools to control contractual conditions in terms of the amount of interest rates on loans. The purpose of the article is to study the theoretical provisions and practical problems of the legal regulation of interest rates in credit agreements with small and medium-sized businesses, as well as to formulate scientifically sound proposals aimed at improving the norms of credit legislation. Conclusions. Based on the methodology of economic analysis of law, the author substantiates the position that the normatively established maximum allowable values of floating interest rates should be extended to all categories of small and medium-sized businesses. It is advisable to use similar rules for loan agreements with a fixed interest rate, the amount of which can be adjusted unilaterally by the lender. Among other things, it is necessary to consolidate in the law the obligation of credit institutions to reduce interest rates by a certain amount, depending on the key rate of the Central Bank of Russia. The author believes that it is advisable to oblige credit institutions to inform the borrower, a small and medium-sized business entity, about the final cost of loan payments and its internal structure before concluding a loan agreement, in case the fixed or floating interest rate increases to its maximum allowable regulatory values. Additionally, the author has investigated some problems of commercial loan enforcement. The study of judicial arbitration practice allows us to conclude that currently there are two diametrically opposed approaches regarding the possibility of judicial reduction of the interest rate on a commercial loan. The author proposes to eliminate legal uncertainty by making appropriate additions to article 823 of the Civil Code of the Russian Federation.

Economic problems and legal practiceVol. 21(4)
Center for Children (US)
Openalex Percentile: Top 58%
Economic Development and Digital Transformation
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Improving the mechanisms of legal regulation of interest rates in credit agreements with small and medium-sized businesses — Evgeniy О. Barashkov · Economic problems and legal practice (2025) | TGRS Research Map | TGRS