摘要：Whether a customer who defaults is entitledto ibra in Islamic financing transactions basedon sale, has been the center of attention ofthe Islamic financial industry for a long time.Previous case-laws show that the approach ofwhether ibra should be granted to a defaultingcustomer has been inconsistent. The ShariahAdvisory Council passed resolutions to addressthe problem but the real solution came whenthe Guideline on Ibra for Sale-Based Financingwas issued in 2011 and last updated in 2013.The Guideline clarifies two main issues. Firstly,whether a customer who defaulted on theirfinancing was entitled to ibra, and secondly,what the parameters for the formula for thecalculation of ibra is. However, there are certainlimitations to the Guideline which limit its scopeof application. The focus of this research is toexplain the issues that the Guideline attemptedto cure and point out some limitations of theGuideline. Possible recommendations are alsomade to overcome the limitations.
