World’s Biggest Debtor Is An Israeli

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An Israeli borrower owed a record $460 billion, most of it interest, on a $870,000 loan he took in the ’90s from a gray-market lender at 77% annual interest for missed payments. The borrower stopped payments in 1996.

After losing two court cases, the borrower appealed to the Supreme Court, by which time his debt was double Israel’s annual state budget.

Justice Isaac Amit canceled the penalty interest rates retroactively and brokered a compromise payment of $6.4 million.

{Matzav.com Israel}

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