ISLAMIC PRINCIPLES OF DEBT EXTENSION IN DISTRESS AND CONTEMPORARY FINANCIAL AGREEMMENT: AN ACADEMIC AND COMPARATIVE REVIEW

Abstract

 Islam has a deep and gently expanding moral teaching to be given to distressed debtors that emphasizes patience and understanding. This principle, based on Qur'anic verses and hadith, encourages creditors to grant breaks, leading to spiritual rewards and social harmony Although it is questionable whether this break is legally obligatory or intelligent action though Islamic jurists recognize it as a moral obligation. Furthermore, if we emphasize the balance between compassion and responsibility in Islamic finance, alternative mechanisms such as imprisonment or continuous care are allowed to ensure debt recovery. Finally, Islam not only encourages the provision of relief but also encourages creditors to work diligently to achieve financial recovery, thereby fostering a culture of empathy and empowerment in the community. The text also discusses various types of financial activities and transactions in terms of Islamic principles, particularly focusing on the prohibition of loss and their exploitation This includes issues such as future sales, speculation, goods of collecting and smuggling. The principles mentioned in the text emphasize justice, honesty, and actions that help or harm others. Islamic teachings discourage hoarding, speculation and smuggling which exploit economic weakness and destroy social harmony. The text also emphasizes the importance of following government regulations, provided they are consistent with Islamic principles, and emphasizes the need to prioritize the public interest over private gain.