The House of Representatives in Egypt is set to discuss on Sunday a draft law that covers issuance of Sukuk aimed at shoring up the country’s finance performance and addressing the budget deficit.
The draft law will let the Finance Ministry to release Sukuk in order to collect capital needed for spending on economy and investment projects that are targeted by country’s budget and development plans.
The Sukuk, which is sharia law compliant and dominant in most Islamic countries, will be a fourth source of finance, along with treasury bills, domestic loans and credit facilities, and foreign loans and credit facilities, the report said.
The sovereign bonds or the sukuk, which is Sharia-compliant and the main financial instrument in many Islamic states, will become the 4th source of income, among the domestic loans and credit facilities, foreign loans and credit facilities and treasury bills, according to a report.
Source: Ahram Online