While there are a number of questions that cannot be answered about redenomination ahead of any actual legislation, an analysis of a loan’s jurisdiction, governing law, currency of payment and place of payment can give clues to the likely currency in which a loan must be repaid.
According to a Clifford Chance client note, first it’s important to establish jurisdiction.
"If the jurisdiction submission provision permits the courts of the departing state to have jurisdiction then, whatever the governing law, the departing state's courts would, in all likelihood, give effect to the departing state's redenomination legislation," said the note.
The borrower would likely...