Kuwait Court of Cassation principle number 3206

The relationship between banks and their customers. Its subjection to the principle of autonomy of will. Its meaning. It is permissible in those contracts to agree on the interest rate applicable to loans granted to them. The condition therefor. This rate must not exceed the rates announced by the Central Bank; otherwise, it is reduced to those rates as at the date of conclusion of the contract. - Increasing the interest rate agreed upon in the loan agreement pursuant to Central Bank decisions adjusting it. This may be agreed upon in the loan agreement without requiring renewed approval from the customer, giving effect to the concurrence of the wills of the contracting parties to grant it this permission. The contract’s failure to include express agreement to this effect. Its effect. The bank cannot increase the interest rate on contracts concluded previously, even if the Central Bank increases it. The reason therefor.