Turkey's VakıfBank eyes $300M loan for new Islamic bank
by AA
ANKARADec 23, 2014 - 12:00 am GMT+3
by AA
Dec 23, 2014 12:00 am
Turkey's VakıfBank's board of directors has authorized a major loan procurement to establish an Islamic banking operation. The board confirmed yesterday that the bank's general directorate now has the authority to push ahead with the $300 million financing project.
In early August, deputy prime minister responsible from the economy, Ali Babacan, said that the government wanted to see three Islamic banks established as subsidiaries of the current state-run conventional banks by the end of 2015.
VakıfBank issued a statement on Tuesday that read: "On December 22, 2014, our board of directors licensed the general directorate of our bank to procure a loan of $300 million under guarantee of the treasury from the Islamic Development Bank (IDB) for the establishment of a participation bank."
The Banking Regulation and Supervision Agency issued a certificate on October 15 giving permission to Ziraat Bank, the second largest in Turkey, to establish an Islamic banking operation with $300 million in capital, making it the first state-run bank to open an Islamic branch.
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