Regulatory Alerts2013-03-17
Instruction 2012-06 on Istisna'a Operations
The Central Bank of Djibouti issued Instruction 2012-06 to regulate Istisna'a operations by defining the Order Giver, Manufacturer, and parallel contract structures. The directive mandates that all Istisna'a contracts explicitly detail party rights, product specifications, pricing, payment terms, delivery schedules, and applicable penalties. Furthermore, it permits Islamic banks to hold resulting assets for over six months with central bank approval and clarifies that existing credit institution regulations apply unless otherwise stated.
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