Some Ayatollahs: Delayed Loan Payment Fines Are Haram

Some Ayatollahs: Delayed Loan Payment Fines Are Haram June 6, 2014

Tonight in “what the fuck”. This is via BBC Persian (in Persian, of course).

Valiollah Seyf, the chairman of Iran’s Central Bank, has traveled to Qum and has met with some of the Ayatollahs and high-ranking clerics there. At the same time, a majority of these clerics have opposed paying fines for delays in paying back bank loans and have called this haram [unlawful in Islam].

These Ayatollahs  have all said paying fines for delaying in loan payments to the banks is the same nature as “usury”, so it’s haram and banks cannot receive it.

These remarks come at a time that some individuals have taken extremely large amounts of loans from banks and refuse to pay them back and banks are not able to force them to. This money amounts to more than 80 hundred billion tomans. Most of these happened during Ahmadinejad’s presidency because of his policy to let certain individuals close to him borrow indiscriminate amounts without going through legal procedures. This is one of the causes of the current economic crises.

The reasoning for them is that based on their version of Islam no one can benefit from investment unless actual work is done by the investment money. A very strict application of this law makes things like interest rates usury as well.

But the truth is that these Ayatollahs are making life harder for the Rouhani administration, limiting his ability to fight corruption and improve the economy.

Another evidence that theocracy is harmful.

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