The legal regulation of interest in the scope of business, a study in Jordanian legislation
Abstract
Abstract
Through our study of the provisions of the Jordanian Trade Law, specifically the rules governing legal interest in the scope of commercial business, it was revealed that the Jordanian legislator did not provide a definition for it, while the principles of the Jordanian judiciary were exposed and settled on a conceptualization of it, considering interest as compensation to the creditor for the damage he suffered as a result of delay in paying the debt And this came in line with the concept of legal interest within the scope of jurisprudential jurisprudence that compensation considered that the debtor is obligated to pay the creditor in exchange for the expended payment from the debt, and accordingly, the interest came in several forms, the most important of which is compensatory interest, the compound, the simple, the compound and the delay.
Within the scope of researching interest rates in the trade law, the interest rate is legally determined at fixed rates in the contract or subject to an agreement between the two parties, so that it can be waived, and in the event that the interest rate is the subject of a legal dispute, he has the discretionary power to reduce or raise its price, and it is in this way It is considered one of the important indicators of the state’s macroeconomics, as it affects the banking sector, local and foreign investors and the general public in society. The determination of the interest rate has been linked to several factors, the most important of which are the change in the level of saving, the international interest rate, the exchange rate, the change in money supply, monetary policy, the budget deficit and the size of government spending .
The banking system in Jordan has been subjected to setting bank interest rates based on the Ottoman Murabaha principle, as expressed in a set of specific legal provisions compared to interest rates in the Jordanian Trade Law, in line with the interest rates set by the Central Bank of Jordan.
