Q. Is it necessary to make a heter iskeh when buying Israel government bonds? Thanks for your constant assistance.

A. Maharshag (Y.D. 50) and Igrois Moishe (Y.D. 2:63) permit lending with interest when dealing with a Jewish owned corporation, since the owners do not carry personal liability and any liens are limited to the corporate assets. Lending to the government of Israel would be similar.

Many Poiskim disagree with the above ruling and consider in reality a corporation not more than a partnership that is obligated to lend without ribbis. (See; Minchas Shlomo 1:25, Minchas Yitzchok 3:1, Ohr Mitzion Y.D. 5, et. al.) However Har Zvi (Y.D. 126) suggest that a Jewish government, since it has no identifiable or defined owners, is indeed different and is similar to Hekdesh.

In reality Israel Bonds (Igrot) is subject nonetheless to a Heter Iska, which can be viewed at their web site.

Rabbi A. Bartfeld as revised by Horav Shlomo Miller Shlit”a