Egypt govt approves law allowing Islamic bond issues

An earlier version of the sukuk law had been criticised by Islamic scholars, forcing a rethink.

Egypt govt approves law allowing Islamic bond issues

World Bulletin / News Desk

The Egyptian government approved a draft law on Wednesday that will allow the state to issue Islamic bonds, or sukuk, a move that could help narrow a gaping budget deficit and boost foreign currency reserves that have fallen to critically low levels.

Shaped by Egypt's first Islamist-led administration, the law will also allow private borrowers to issue sukuk. Egypt has never before issued bonds that adhere to Islamic principles, under which the payment of interest is banned.

The law will be referred to the upper house of parliament before final approval from President Mohamed Mursi. An earlier version of the sukuk law had been criticised by Islamic scholars, forcing a rethink.

Last Mod: 27 Şubat 2013, 16:50
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