[Avodah] prozbul & heter iska

[Eli Turkel]

<<A third major consideration was in play: were the prozbul and heter
iska not available, the rich creditors simply wouldn't lend, period.
Who would lose out? The poor. >>

This may have been true once but I don't think reflects modern commerce.
No major company including the rich can continue without bank loans.
The Reichman's needed multi-billion dollar loans to for their projects.

In fact this is one of the old questions - why should the Torah
prohibit interest?
In makes sense it lending to the poor person not in lending to the
multi-billionaire.

<<The term "heter iska" nowadays is used for all arrangements that get
around the prohibition on ribbit regardless of whether it involves
an actual iska.  There are many much simpler arrangements that don't
involve an iska, and which earlier generations simply didn't think of.>>

Can you please give more details. The heter iska put on the walls of Israeli
banks seem to talk about a real business proposition. In fact I seem to recall
a court case where someone sued the Israeli bank to cover his losses based
on the heter iska while the bank claimed it is just a religious document without
any real obligation.

<<This comment brings up an interesting theological question. If the
above is the case, then why did God legislate it to begin with?
In other words, the prozbul could have been built into the torah.>>

The question comes up with regard to shemitta. Why does the Torah have
to promise
that the land will give enough to cover 3 years, the people should
just see this through
experience.
It seems that once the Torah promises something we are supposed to accept it
even when it is not obvious in every day experience. However, most
people are not
reliant on Hashem
When it comes to money matters like shemitta (land and loans), interest etc.
it is hard to be machmir.

-- 
Eli Turkel