Kuwait Court of Cassation principle number 654

Interest on a commercial loan. 7% where its rate is not specified in the contract. The contracting parties may agree on another interest rate. The condition therefor: that this rate not exceed the rates announced by the Central Bank, which its Board of Directors determines 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. Bank-rate interest does not apply to its individual entries during its operation; rather, the rate the parties agree to apply runs on it. The parties' failure to agree on this rate. Application of the statutory rate, with interest at 7%. - Fixing the interest rate in the facilities contract 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 contract. The contract's failure to specify an interest rate on the account's balance debt after its closure. Its effect. Application of statutory interest at 7%. The challenged judgment's reaching this result. Correct. (b) Credit and Savings Bank