ISTANBUL
Turkey will promote interest-free finance systems and loan methods for diversifying interest-free products and services in the coming period.
The country will make regulations for interest-free finance systems, according to data Anadolu Agency compiled from the Turkish Presidency’s Annual Program which was released on Monday.
The program noted that interest-free corporate loan methods will be encouraged and ‘Sukuk’ — non-interest-bearing note — will be issued.
Within the scope of the non-interest finance system regulations, the government aims to form a real estate investment trust for agricultural lands’ incomes.
“A rating agency will be established to comply with the principles of interest-free finance,” the program said.
Turkey, which established three state participation lenders besides three private participation lenders, attaches great importance to non-interest finance solutions.
President Recep Tayyip Erdogan has previously said the participation of finance institutions’ share is targeted to rise 15% in the banking assets as of 2025.
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