Turkey to promote interest-free finance

By Gokhan Ergocun

ISTANBUL (AA) - 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.