Defaults Pose Latest Snag In Islamic-Bond Market

WSJ ^ | 6/16/09

[FromLori]

LONDON -- The once-booming market for Islamic-friendly bonds, having suffered a contraction amid the credit crisis, now faces a new challenge: default. The fledgling market in recent months experienced its first two defaults, and they aren't expected to be the last as issuers like Saad Group hit financial difficulties. This is taking investors and courts into uncharted territory as they seek to apply Western laws to bonds that were designed to comply with Islamic law, or Shariah.

[FromLori]

Gee that's too bad snicker.

[2banana]

Dubai has debtor prisons. You stay there until someone pays your debt. How is that for islamic finance?

[samadams2000]

Doing business with muslims is impossible,,loaning them money on a promise to pay back at a much later date is well...insanity.