Are poor countries obliged to repay their debts to the West?

Yes. Whoever freely enters into a contract is bound to fulfil it, whether an individual or a state. At the same time, the Holy Qur’an urges creditors to give a debtor in hardship time to pay.

The moral answer is simple. When a country freely enters into a contract with another, it is bound by that contract, whatever its nature. There is no other moral duty than to fulfil it. Whether the contract was wise is a separate question. It remains valid all the same.

What holds for an individual holds for states as well. A state that borrows money makes a promise on behalf of its whole people. The verses above require contracts to be fulfilled and remind us that every covenant will be called to account. The first hadith shows how heavily an unpaid debt weighs, even beyond death.

This does not mean that Islam overlooks the hardship of poor countries. The responsibility lies on both sides. The third verse speaks directly to the creditor. If the debtor is in difficulty, he should be given time until things improve. And whoever writes off the debt altogether does better still. The second hadith promises God’s shelter to those who grant respite to someone in distress.

So a balanced picture emerges. Poor countries should keep their word and not simply refuse to pay their debts. Rich countries, however, should not insist on their claims without mercy when a debtor truly cannot pay. Honesty on one side and generosity on the other are both commanded by God.