Answer: Taking Interest is
prohibited whether in a Muslim country or in a non-Muslim country because of
the fact that it is inherently an unethical contract. Things which are
unethical are prohibited whether they be with Muslims or non-Muslims. In
other words, just as one should be honest not only with Muslims but also
with non-Muslims, similarly one should also not be selective on the basis of
religion in taking interest.
The Hadīth you have referred
to is not an authentic one and
is also not found in the six major books of Hadīth . Its content also
contradicts the Qur’ān. As a result, I am afraid it cannot be accepted.