One is forbidden to ask a somebody to repay their loan if one knows they do not have the money to do so.
In such a case, one is not even allowed to purposely walk by him as a subtle reminder.
Verse: "Do not insist on the money" Shmot 22:24
Similarly, a debtor may not tell the creditor to "come back later" if he already has the money to pay, as it says in Mishle (3:28) "Don't say to your friend return and tomorrow I will pay, if you have what to give."
It's also forbidden for the debtor to squander the loan, for if he doesn't repay it he is called "wicked" as it says in Tehilim (37:21) "A wicked debtor who doesn't repay".
Applies to everybody, everywhere, always.
Source: The Chafetz-Chaim's Sefer haMitzvot haKatzar; Prohibition 52
- Danny
Sunday, 9 Shvat 5770
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