Regulatory Alerts2013-03-17
Bai Salam Operations
The Central Bank of Djibouti issued Instruction 2012-07 to regulate Bai'salam operations, defining key terms such as Buyer, Seller, Product, and Parallel Bai'salam. The Instruction mandates that Bai'salam contracts expressly specify the parties' rights, product description, pricing, guarantees, and delivery terms. Furthermore, it limits asset holding periods to six months following acquisition, allows debt substitution for product prices, and subjects Islamic banks to general credit institution regulations unless otherwise stipulated.
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