Financial adviser: Multinational banks offer support for Islamic bonds

Financial adviser: Multinational banks offer support for Islamic bonds

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Wed, 23/01/2013 - 20:30

Multinational banks such as Citibank, Credit Agricole and the Islamic Development Bank expressed willingness to provide support to Egypt in the early stages of issuing Islamic bonds, an adviser to the finance minister said.

Ahmed al-Naggar, the adviser responsible for the Islamic bonds, or sukuk, said the banks were willing to provide technical and administrative support and to train staff.

“They are willing to do so because they project good growth rates,” Naggar told state news agency MENA, referring to the bonds, and adding that they would be offered on the stock exchange and global financial markets.

“The Islamic Development Bank has allocated US$6 billion for that purpose,” he said.

The Finance Ministry had prepared an earlier draft law on sukuk that was rejected by the Al-Azhar Islamic Research Academy. Later, the Shura Council Economic Committee proposed an updated draft law on them.

The draft law has provoked criticism from both religious figures and financial experts, although state officials believe bonds would provide a way out of the nation’s financial crisis.

Edited translation from MENA