Kuwait Court of Cassation principle number 3660

Interest on a commercial loan is 7% where its rate is not specified in the contract. The contracting parties may agree on - 618 - Commercial a different interest rate. Condition thereof: 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 a current account. Its effect. The balance debt becomes an ordinary debt. Bank-rate interest does not apply to its individual entries during its operation; rather, the rate the parties agree to apply governs it. Failure of the parties to agree on this rate. Application of the statutory rate, with interest at 7%. - Determination of the interest rate in the facilities agreement consistently with the Central Bank’s decisions determining the maximum interest rate and within the discount rate announced by it on the date the loan agreement was concluded. The contract’s failure to specify the interest rate on the account balance debt after closure. Its effect. Statutory interest applies at 7%. The challenged judgment’s reaching this conclusion. Correct. - The balance debt in a current account:-