Lease Certificates As Sukuk Financing Model In Turkey

Despite the fact that a considerable Muslim population lives in Turkey, the legal basis of Sukuk as the financial instrument, which is a free interest financing model has been set up with the Communiqué Series III No: 43 on Lease Certificates and Asset Lease Companies in April 2010, in which ijara sukuk has been adopted. After the adoption of tax exemptions for the issuance of Sukuk, Kuveyt Turk Katılım Bankası was issued the first Sukuk in Turkey in 2011. Despite this issuance of Kuveyt Türk and Sukuk has not been used as a financing model and its market has not been enhanced as expected, since it has not been familiar as financing model, there has been no much market players and the market players have not had huge volumes to enable the SUKUK market to be developed and there have been deficiencies in its legal framework enacted in 2011. In 2013, the Communique Series III No: 61 on Lease Certificates having abrogated the Communique Series III No: 43 and in which the