The Interest-Free Instruments Used for Public Borrowing in the Ottoman Empire and Medieval Europe: A Comparative Perspective

Borrowing is not only a practice of individuals and corporations, but the states also borrow to afford their expenditures. Similar individuals, have borrowed since ancient times. Most such loans been at interest. However, authorities restricted or prohibited interest-based lending in various societies. Thus, city-states Medieval Europe Ottoman Empire could always use ordinary borrowing instruments due prohibition Since, recent years, modernized forms early interest-free public methods are being asserted be used by modern economies as well, paper evaluates European Empire. At first, rentes compera, Europe, presented. Then, iltizam, malikane, esham, Empire, introduced. Lastly, similarities discrepancies among these utilized scrutinized.