Kuwait Court of Cassation principle number 2548

Interest on a commercial loan. 7% where its rate is not specified in the contract. The contracting parties may agree on - 437 - Commercial another rate of interest. The condition therefor: that this rate not exceed the rates announced by the Central Bank, which are determined by the Bank's Board of Directors after approval by the Minister of Finance. Articles 102, 111 of the Commercial Code. - Closure of the current account. Its effect. The balance debt becomes an ordinary debt. The banking interest rate does not apply to its individual entries during its operation; rather, the rate which the parties agree to apply governs it. The parties' failure to agree on this rate. Application of the statutory rate, interest being 7%. - Fixing the interest rate in the facilities agreement consistently with the Central Bank's decisions fixing the maximum interest rate and within the discount rate announced by it on the date of conclusion of the loan agreement. The contract's failure to specify the interest rate on the debt representing the account balance after closure. Its effect. Statutory interest applies at 7%. The challenged judgment's reaching this conclusion. Correct. - Duration contract:-