Algeria allows Islamic funding counters in banks

The Bank of Algeria is considering a set of proposals to open special counters for Islamic funding in state owned banks by 2009.

• A large number of people in Algeria avoid dealing with classic or regular banks. They believe these banks  do not comply with Islam’s principles.
• Algeria Tuesday hosted a first meeting on Islamic funding to discuss ways to allow people and venture owners to benefit from available products in the financial market.
• “The decision of Islamic funding counters will open the way for many Islamic banks to fund the Algerian economy in conformity with Islamic priciples,” said director of accounts at Société Générale- Algeria.
• Haider Nacer, director of legal affairs at the Islamic El Baraka Bank, says the annual growth rate achieved  by the bank tells about the  size of the Algerian demand for Islamic funding.
• “The perfect solution is to make slight changes to the actual legal aspect. It would allow Islamic banks to show some accountancy details and prove that they are real Islamic banks,” Haider Nacer added.
• Islamic banks adopt the interest-free loans to meet various kinds of financing requirements in conformity with Islamic principles. The transaction is used in consumer finance for purchasing cars, household appliances, machinery, equipment and raw materials.