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.