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00:28 GMT +3 hours18 December 2014
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Kyrgyzstan opts to introduce Islamic finance tools

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Kyrgyzstan is working on the introduction of various tools of Islamic finance in the country, Kyrgyz First Deputy Prime Minister Omurbek Babanov said on Wednesday.

Kyrgyzstan is working on the introduction of various tools of Islamic finance in the country, Kyrgyz First Deputy Prime Minister Omurbek Babanov said on Wednesday.

"We are currently promoting the principles of Islamic financing based on a memorandum of mutual understanding between Kyrgyzstan and the Islamic Development Bank," Babanov said speaking at the World Islamic Economic Forum (WIEF) in Astana.

The memorandum, he said, also envisages the transformation of Bishkek, the capital of Kyrgyzstan, into the center of Islamic financial services for the whole Central Asian region.

The official also said the country is currently mulling over projects of introducing sukuk (the most used Islamic finance transaction by the Islamic finance institutions around the world) and takaful (Islamic insurance).

Islamic finance is banking activity, which is consistent with the principles of Islamic law (Sharia) and implemented through the development of Islamic economies.

ASTANA, June 8 (RIA Novosti)