Business & Economy
Written By: Faisal Darem
Article Date: May 16, 2010 - 4:28:43 PM
Surpluses of Islamic banks or Islamic instrument will support development through financing infrastructure projects and various sectors of trade, health, education and other, which proved the success of this great experiment in contributing to the development process.
In the lecture held Tuesday by Yemen Bankers Association, Dr. Osman Khair, General Manager of the Stock Market in Khartoum and an expert in the International Monetary Fund (IMF) and delegated to assist the CBY in determining the structure and systems of the Islamic instrument unit at Central Bank of Yemen reviewed Sudan's experience in issuing Islamic instrument through which the surpluses of Islamic banks.
The lecture was attended by 40 specialists from the Central Bank of Yemen (CBY), Yemeni banks and the unity of the stock market and the relevant agencies.
In the lecture, Dr. Khair reviewed Sudan's experience in issuing instruments, through which the surpluses of Islamic banks are employed in financing infrastructure projects and various sectors of trade, health, education and other, which proved the success of this great experiment in contributing to the development process.
Yemen seeks to benefit from the brotherly and friendly countries' experiences in the field of issuing the Islamic instruments, in forefront of which is Sudan.
The unit of Islamic instruments in the CBY is currently studying the important projects that can be financed through these bonds, among them the projects of electricity in particular.
The CBY is now intensifying its efforts in cooperation with specialized Saudi, Arab and international finance institutions and organizations to speed up issuing the system of Islamic bonds in the Islamic and trade banks working in Yemen for the first time in the last quarter of this year, which will open a window for the Islamic banks to use their surpluses and at the same time saving funds for financing the projects of the socio economic plan in Yemen.
On the other hand, the conclusion of first conference of Islamic banks of held on March recommended the need to carry out standards for the issuance of Islamic instruments because of their benefit to the community development.
International Monetary Fund (IMF)'s mission confirmed last year in their study that Yemen is a good environment for the issuing of Islamic instruments.
The IMF's official reviewed the final results of the mission to study the issuing of Islamic instruments in Yemen, and recommended beginning planning for issuing the instruments in order to absorb the surpluses at the Yemeni Islamic banks and to use the instruments for financing economic and social planning projects.
The study was based on the general objectives that the Yemeni government seeks to achieve through issuing the instruments, whether by expanding its financial base or by creating investment opportunities with Islamic finance tools.
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