Rabat – Morocco’s Islamic Affairs Minister Ahmed Toufiq is facing criticism for saying that not all bank loans are forbidden under Islam during a Royal Ramadan Lecture on March 15.
In Islam, there is a general consensus among scholars that the act of both receiving and paying interest on loans is forbidden. A minority of religious scholars, however, have argued over the years that interest rates do not qualify as “riba” – the exact word used in the Quran to describe interest- unless the interest rates are disproportionately high.
While delivering the Royal Ramadan Lecture, Ahmed Toufiq said that “some speakers on religious matters have troubled the conscience of Muslims by saying that interest is the same as profit on a loan(riba)regardless of the amount.”
He explained the distinction between the two concepts by saying that riba, mentioned in the Quran, “came to break away from a practice that was common in some ancient civilizations, which was the enslavement of those unable to repay debts with compounded interest.”
According to Toufiq, in the modern world “borrowing is mostly for necessity or investment, and except for deferred payments and service charges, interest decreases as the economy grows in the country.”
He further argued that renewing the system of the Emirate – which was the center of the lecture – “has led to the establishment of Islamic financial transactions, with the highest religious authority issuing over one hundred and seventy fatwas on the subject so far.”
His statement refers to the establishment of Islamic banks in Morocco, which had followed the regulatory approval in 2018.
The minister’s remarks drew widespread criticism, accusing him of attempting to distort Islamic principles. One influential scholar with over 40,000 followers on social media, Hassan Kettani, took issue with the minister’s statement and posted a long response reaffirming Islam’s stance on the issue.
In a post on Facebook, Kettani said that the minister “permitted forbidden usurious loans prohibited by the Quran, Sunnah, and consensus, considering this to be a renewal of religion.”
“What kind of renewal is intended?” he asked rhetorically, challenging the basis of Taoufiq’s attempt to make loan interests Halal.
“One of the meanings of renewal is: the application of Sharia rulings to emerging events and circumstances, addressing them in a manner rooted in revelation rather than intellect and desire, God forbid,” the post reads.
He further questioned whether Taoufiq’s statement reflects his personal opinion or is the stance of the Moroccan Supreme Council of Scholars.
