REUTERS – INDIA: PARIS - The French parliament passed a law on Thursday which will facilitate the issuance of Islamic bonds despite opposition from leftist parties.
The adoption of the law, which was voted in by the Senate, or upper house of parliament, on June 9 modifies the legal framework for what is known as "fiducie", the French equivalent of trust in the United Kingdom.
In theory, this should facilitate the issuance of Islamic bonds, also known as "sukuk", although the government has been working on an alternative tool for issuing such debt, which could involve further legal measures.
The move is part of France's two-year drive to create a new European hub for Islamic finance, whose value globally is estimated at $1 trillion.
The ruling UMP party and the New Centre voted for the law while opposition came from the Socialist Party and other left-leaning groups, highlighting resistance from some quarters in France to altering the law in a way that could be seen to affect secular traditions.
"We are introducing Islamic law into the French legal framework," said Henri Emmanuelli from the Socialist Party. "This deeply shocks us, it is unacceptable," he said. Some experts hope that France… >>> Additional reporting by Cecilia Valente in London; Reporting by Emile Picy; Editing by Ruth Pitchford | Thursday, September 17, 2009
