Words of Wisdom - the Editor

Peace.
Got busy with a new project. So couldn’t add more news. Although I came across a fine article by a brother on the history and future of Islamic Banking. I was surprised to know that Islamic banking had beginnings in 1975. Wow. That’s almost as early as my birth. And I guess if there are enough like minded people any idea is bound to grow. I too used to wonder if I can invest without plunging into interest based transactions.

UK I noticed is taking some fine initiatives to promote Shariah Finance. Also came across a western brother or atleast who calls Muslims his brothers and sisters but laughs cynically at the DOW Islamic index as 'bending backwards' to accommodate those guys who have four wives and cut of peoples hands. O well some people just don't get it, do they?

Monday, May 19, 2008

Indonesia plans retail sharia bonds, T-bills

By Adriana Nina Kusuma

JAKARTA, April 30 (Reuters) - Indonesia's finance ministry said on Wednesday it planned to issue sharia-compliant bonds for retail investors as well as Islamic T-bills to help develop the local Islamic finance industry and plug its budget deficit.

It would also issue separate Islamic bonds, or sukuk, to finance government projects, the ministry said in a statement.

Last week the government said it would raise up to $2 billion this year by selling its first Islamic bonds to fund the budget deficit. It plans two bonds in the second half of 2008 in domestic and overseas markets.

Sukuk comply with sharia, or Islamic law, which bans lending for interest. Bond holders are paid income derived from assets such as rent from property, or from commercial transactions such as trade in goods and services.

Analysts said news of the latest planned issuance should be well received and the debt could help the government overcome problems raising funds in the traditional bond market, which has been hurt by the subprime crisis.
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