Int’l Bank of Azerbaijan signs its first contract since Islamic window launch

Int’l Bank of Azerbaijan signs its first contract since Islamic window launch

The International Bank of Azerbaijan (IBA) and the Islamic Corporation for Development of Private Sector (ICD) have signed the $20 million Commodity Murabaha Agreement.

“Commodity Murabaha means sale of certain specified commodities, through a metal exchange, on a cost plus profit basis,” IBA Islamic Banking Director Behnam Gurbanzadeh said, Fineko reports.

The one–year IBA-ICD contract is based on Palladium trading. “It is notable that the IBA was able to sign its first contract with the Shariah requirements in less than a week after the launch of the Islamic window,” Gurbanzadeh said.

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