Distr. GENERALS/AC.26/1994/221 October 1994
In its Decision on "Awards of Interest" (hereinafter referred to as "Decision 16"), 23 the Governing Council provided that "[i]nterest will be awarded from the date the loss occurred until the date of payment, at a rate sufficient to compensate successful claimants for the loss of use of the principal amount of the award". The Governing Council further stated that it will consider "at the appropriate time" the methodology for the calculation of interest and its payment, and that payment of interest will only take place after the principal amounts of all awards are paid.In the Panel's view the above Decision of the Governing Council is supported by international law and jurisprudence which recognize the principle that interest should be paid on the principal amount of awards to make successful claimants whole for their losses. 24
24Cf., e.g., Lillich, R., "Interest in the Law of International Claims", Essays in Honour of Voitto Saario and Toivo Sainio, 1983, p. 51; Wetter, J.G., "Interest as an Element of Damages in the Arbitral Process", International Financial Law Review, 1986, p.20.