[Cachelot]

According to the Wahabbi interpretation of the Koran, interest is forbidden, so it should be fairly easy for them to find justification on defaulting

Justification is one thing, but it may present some practical problems so long as they own large holdings in other countries. What if their creditors grabbed their real estate in London, for example?

[Roy Tucker]

I was being somewhat facetious. The Saudis pay interest they just call it commissions. They also borrow abroad where it is clearly stated that interest is payable. Many Muslims believe that it is not the paying of interest but usury is forbidden in the Koran. But don't be surprised if it becomes a rallying cry from the rabble-rousing fundamentalists.

My experience is that unless it is the specific borrower who defaults who also has assets overseas, then it is very difficult (as it should be)under US and international law to seize that property. If a Government defaults, it is hard to justify that you can seize some prince's real estate in London. Although given the interconnection between the Government purse and the royal family it would be a stronger case to make.