KCC 1725/2014

This case involved what rate of interest should apply after the closing of a loan account.

Background

An appealed ruling had dismissed the request for payment of contractual interest of 4% above the discount rate stipulated by the Central Bank.

Decision

The court said that the documents of the case revealed that the two parties did not agree on the contractual interest after the closing of the loan account. The court said that the legal interest rate of 7% should therefore be applied on the loan. The court said that the appellant's defence was therefore irrelevant in this regard and should be dismissed according to Article 152 and 154/5 of the Advocacy Law.

The court dismissed the appeal.