Sovereign debts crisis: A study in the Islamic economy

Abstract

The Sovereign debts come as a result of the government failure in paying the debts in the foreign currencies. Subsequently, the government would be disable to pay for the due commitments of that Sovereign debts. In the current period, the seigniorial debts became much more popular especially within the risks of the disability of debts payment. 

The research hypothesizes that the Islamic economy has  an instrumental role in diminishing the negative effects of the financial crises including the Sovereign debts  by adopting the financial methods in the Islamic banks. The research aims at figuring out the nature of the Sovereign debts crises and the their causes, besides figuring out the attitude of the Islamic economy and how to treat them by adopting the Islamic cheques for they are considered legitimate alternatives of the documents.