Delay of payment, who carries the effect of inflation ? : delay of payment of debts and inflation

Fatawa Question

As Salamu Alaikum : I live in the UAE for the last seven years. Four years back, a very close relative of mine took a loan from me-essentially my 3 year savings with a promise to return in a month. The loan is yet to be returned and I am hit by exchange rate depreciation that Pakistan rupee is suffering. Essentially I do not have this major amount of cash available to me for the last 4 years and the equivalent Dirhams that I might get if the loan is returned today, would be around 40 % less then the Dirhams passed on four years back to this relative of mine. At the time of giving the loan, this long delay was not anticipated and therefore there was no discussion of exchange rate fluctuations. It might be worth mentioning that due to delay in receipt of these funds I had to give up major investments / personal business plans for myself and family. Can I ask my relative when I am getting the money back to repay me Dirham equivalent in Pakistan RS ?? Was-Salam.

Fatwa

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Publication Date

2001-05-10

Main Subjects

Economics & Business Administration
Islamic Studies

Topics

• Islamic jurisprudence
• Islamic economics
• Inflation(Finance)
• Investments
• Debt repayment
• Debts
• Loans
• United Arab Emirates
• Payments

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-724065

• APA
• MLA
• AMA