Regulatory Alerts2013-03-17
Instruction 2012-05 on Ijara Tachghilia and Ijara Mountahia bi Tamlik Operations
The Central Bank of Djibouti issued Instruction 2012-05 to regulate Ijara Tachghilia and Ijara Mountahia bi Tamlik leasing operations conducted by Islamic banks. The instruction defines these lease structures, mandates specific contractual elements including rent, duration, maintenance, and insurance, and requires banks to liquidate or re-lease unleased assets within six months of acquisition or contract maturity. Furthermore, it subjects immovable property leasing to prior regulatory approval and allows for extensions when delays arise from circumstances beyond the banks' control.
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