Following the onset of the financial crisis, Spanish courts began looking closely at interest rate swaps. Perez-Llorca’s Guillermina Ester says their decisions have been controversial
An interest rate swap (IRS) is a contract in which a bank and a contracting party agree to exchange amounts of money calculated on the basis of different interest rates (eg, the Euribor and a fixed interest rate). Both amounts are set off against each other and, as a result, one of the parties pays the net remainder to the other.
