Media: maternity capital may be used in Islamic banking

17 May

Maternity capital may be allowed to be used to buy a house in accordance with the principles of Islamic banking. This was reported on Wednesday by Izvestia with reference to the Central Bank of Russia.

This will be provided by amendments to the bill on partnership financing. The experiment to implement Islamic banking in Dagestan, Chechnya, Bashkortostan and Tatarstan will last for two years, beginning July 1, 2023.

Deputy Director of the legal department of the Central Bank Maxim Filimonov told the newspaper that an important amendment to the second reading of the document is allowing to use maternity capital to purchase housing in installments for partnership financing. For this purpose, it will be necessary to apply to the bank, Izvestia wrote.

The list of allowed transactions in the framework of partnership financing will be clearly defined. According to the principles of Shariah, no interest should be used, but remuneration is allowed, the amount depending on the profitability of the transaction, the newspaper added.

In addition, the press service of the Ministry of labor told the newspaper that the amendments to the legislation on using maternity capital for purchasing real estate under partnership financing will not be required.

The bill on Islamic banking was submitted to the State Duma in September 2022, it was passed in the first reading in December.



GSV "Russia - Islamic world"

Photo: Sergey Bulkin/

Based on materials from TASS