Egyptian president OKs law allowing Islamic bonds

CAIRO (AP) — Egyptian President Mohammed Morsi has signed a new law allowing the state to issue Islamic bonds — an effort to help ease an expanding budget deficit.

The Islamic bonds, known as Sukuk, are similar to regular bonds but do not have a fixed interest rate, which violates Islamic Shariah law. The move also was a way for Morsi to put an Islamist stamp on the country’s economy.

The new bonds that became valid on Wednesday faced a storm of criticism in recent months from both the liberal opposition and ultraconservative Salafis. They feared that by allowing the new bonds, the Morsi government would be opening doors for foreigners to have shares of the country’s assets.

However, the final version of the law banned issuing the Islamic bonds for state-owned assets.

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

blog comments powered by Disqus