What is the ruling on dealing with the usurious bonds imposed by the Iraqi government in exchange for outstanding payments for wheat sales, knowing that there are outstanding debts, and is discounting the amount for prompt payment considered "pay less to hasten," and does seeking to complete the transaction fall under the curse?
If the government delays in paying its debts and issues deferred bonds with usurious interest, then there is no sin upon you due to your lack of choice. The usurious interest must be disposed of by giving it to the poor or spending it on general Muslim welfare. Bonds that represent an obligation to pay an amount with interest are usurious loans, which are forbidden by Islamic law. It is permissible to reclaim the money with a discount from the bond's value. This is not a case of "forgo and hasten" [a phrase referring to a permissible reduction in debt for immediate payment], but rather a reclamation of money that was taken unlawfully, and it is better than waiting three years.
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