News: Regulation & Government
18 February 2008
Breaking News

Darling to back Sharia bonds

Britain could become the first western country to issue Islamic bonds in line with Sharia law to raise money for public spending programmes.

In next month’s Budget, the Chancellor Alistair Darling is expected to back the bonds, which would attract investment from the Middle East. A consultation exercise is already underway on the issue, launched in November, ends on Thursday.Islamic law forbids making money from interest, making conventional loans unacceptable to the devout. Specially-designed bonds have been created to comply with the demands of Sharia, and are estimated to be worth £5.5bn in a £125bn global Islamic financial market.

If you have any comments you would like to add to this story or would like to speak to Mortgage Solutions about a similar subject, telephone Sarah-Jane Tasker on 020 7484 9960 or email [email protected]

 

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