IDB delays short-term sukuk as sector looks for liqudity tools

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The Jeddah-based Islamic Development Bank has ** immediate plans to issue short-term sukuk (Islamic bonds), leaving it to domestic and regional issuers to meet growing demand for liquidity management tools in the sector. A lack of sharia-compliant paper has been a major constraint for the development of Islamic finance, with the tools needed to help Islamic banks meet tough Basel III regulatory standards being phased in very gradually. Last year, the IDB said it aimed to issue its first short-term sukuk in 2014, adding to wider efforts to develop high-quality liquid assets (HQLAs) for Islamic banks to use, but at this stage such a programme is **t planned. "IDB in principle supports the establishment of the short-term sukuk programme but for the time being we are **t considering any issuance," IDB President Ahmad Mohamed Ali told Reuters late on Wednesday.

أكثر... (https://en-maktoob.news.yahoo.com/idb-delays-short-term-sukuk-sector-looks-liqudity-062840961--sector.html)