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Who is the beneficiary of the discount relinquished by the company: (a) the original borrower, or (b) the usufructuary of the loan and its installment payer?

1 min readAlso available in العربية

The relationship between parties (A) and (B) could be a loan, where (B) borrowed from (A), in which case (A) benefits from the company's debt forgiveness. Alternatively, it could be an agency, where (B) appointed (A) to borrow from the company, and (A) is merely a guarantor. In this scenario, (B) benefits from the debt forgiveness if he borrowed from the company. Therefore, clarification is needed to determine whether the transaction was a loan from (A) to (B) or an agency where (B) borrowed from the company.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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