oh dear: Government may issue sharia bonds, says Balls

[zathras]

Well I suppose that is one way of reducing government borrow. Borrow money on zero interest.

[Sysman]

For once I agree with you Snaw.

BUT..... (back in my rage against Islam idium) this just goes to show how false many practitioners of Islam are.
The Koran and hadith dont actualy ban interest or profit. What they ban is usuary (spelling?) which is excessive interest and profit.
What the Sharia banks are doing is using weasel words and arrangements to get round the word of the Prophet, something specifically banned by the Koran and Hadith, so that they can make a bigger profit (usuary).

Why should we as non Muslims respect Islam when Muslims do all they can to work around it?

BTW. I bet if Sharia compliant loans work out realy cheap that non Muslims will not be allowed them.

Spot on.

PS The spelling is usury.

[The Lone Gunman]

Perhaps we could all actually read the feckin article and go yeah, good idea.



Why the kneejerk reaction that this is somehow bad and stereotypical muslim jokes? What's different from this and some a fund company offering this, or ethical funds or any other variation of financial products out there - plenty of muslims with liot's of cash in the world, why not get some of it here and the jobs it could bring?

For once I agree with you Snaw.

BUT..... (back in my rage against Islam idium) this just goes to show how false many practitioners of Islam are.
The Koran and hadith dont actualy ban interest or profit. What they ban is usuary (spelling?) which is excessive interest and profit.
What the Sharia banks are doing is using weasel words and arrangements to get round the word of the Prophet, something specifically banned by the Koran and Hadith, so that they can make a bigger profit (usuary).

Why should we as non Muslims respect Islam when Muslims do all they can to work around it?

BTW. I bet if Sharia compliant loans work out realy cheap that non Muslims will not be allowed them.

[snaw]

Perhaps we could all actually read the feckin article and go yeah, good idea.

The government is considering borrowing money through bonds that are compliant with sharia law as part of its attempt to boost the City's standing as an attractive place for Muslims to do business.

Why the kneejerk reaction that this is somehow bad and stereotypical muslim jokes? What's different from this and some a fund company offering this, or ethical funds or any other variation of financial products out there - plenty of muslims with liot's of cash in the world, why not get some of it here and the jobs it could bring?

[Throb_Nugget]

Does this mean that if I convert to Islam, I get an interest free mortgage?

Probably. And you'll have to grow a long fuzzy beard and sling a veil over your missus, though the latter might be an attractive option depending on the state of your relationship

[Sysman]

Does this mean that if I convert to Islam, I get an interest free mortgage?

[Throb_Nugget]

Another move towards sharia law

Perhaps the Chancellor of the Exchequer can be publicly beheaded when it goes t1ts-up

[wendigo100]

Another move towards sharia law

Perhaps everyone with mortgages should go out into the streets and hit themselves over the head with their shoes when the interest rates rise again.

[Hart-floot]

Another move towards sharia law

Perhaps we can stone the governor of the bank of england when he gets the inflation figures wrong again

[Throb_Nugget]

The government is changing the rules to allow Sukuk bonds to be issued, held and traded in the same way as corporate bonds to try to encourage more of them to be issued in London.

Shouldn't that 'Suck UK'

[andy]

Another move towards sharia law

[AtW]

Government may issue sharia bonds, says Balls
Jill Treanor
Monday April 23, 2007
The Guardian

The government is considering borrowing money through bonds that are compliant with sharia law as part of its attempt to boost the City's standing as an attractive place for Muslims to do business.

Ed Balls, the City minister, has also asked National Savings & Investments to look into the possibility of the government issuing financial products that retail investors wanting to comply with sharia law can buy.

The Treasury and the Debt Management Office, which handles bond issues for the government, are to conduct a feasibility study into the costs and benefits of issuing financial instruments that are acceptable to investors who cannot accept interest. The report is expected in the autumn.

Under sharia law, making money from money, such as charging interest, is not permitted, which restricts opportunities for investing to trade and assets. The Islamic financial model is based upon risk-sharing between financial institutions and customers. For instance, customers are able to get credit by asking a bank to buy an item, which it then sells on to them on a deferred basis.

The market is expected to grow quickly as there are estimates suggesting that there are more than £125bn of Islamic finance assets worldwide.

The decision to consider launching government-sponsored products follows a meeting this month at 11 Downing Street when an Islamic finance experts group was formed.

Mr Balls will outline the latest plans in a speech at a Financial Services Authority conference today. "Domestically, we will do everything we can to promote new ways for British Muslims to bank, save and borrow using Islamic finance products," he will say.

"I believe there are great potential advantages for the UK government issuing sharia-compliant government debt. The feasibility study will also be assessing the opportunity for issuing such instruments, taking into account the government's debt-management objectives."

The government needs to borrow almost £60bn for the 2007-08 financial year - some £1.4bn in Treasury bills and the rest in gilts.

The size of the market for Sukuk bonds - ones that comply with sharia law and are similar to securitised loans - is estimated to be about $4bn (£2bn). London has hosted the issuing of a number of these types of products - one of the largest was issued by Dubai Ports this year.

The government is changing the rules to allow Sukuk bonds to be issued, held and traded in the same way as corporate bonds to try to encourage more of them to be issued in London.

The high-street banks are also devising products for Britain's two million Muslims. HSBC, for instance, offers an Islamic mortgage and current account.

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I just could not resist not to post this one