In the referred letter, the applicability and compliance of processes and documents of the Participation Finance Investment Credit that was requested to be extended by Turk Eximbank through murabaha, and particularly the "General Murabaha Agreement" to be made with the parties that will use the funds with the participation finance principles and standards are requested to be evaluated.
Documents sent to us by Turk Eximbank for evaluation were examined by the Advisory Board, and issues that need regulation were submitted to Turk Eximbank. The documents, which were corrected and re-sent to our Board by Turk Eximbank, were examined by us, and the product was decided to comply with the participation finance principles and standards as presented in the annex.
According to the tenth paragraph of Article 19 of the "Regulation on Making Changes in the Regulation on Credit Transactions of Banks" published in the Official Gazette dated 25.01.2019, development and investment banks are allowed to finance their customers with interest-free finance products, within the limited resources they provide via interest-free methods. In this regard, it has been agreed that the processes and documents of the murabaha-based Participation Finance Investment Credit product sent to us by Turk Eximbank contradict neither the principles stated in the "Murabaha" draft standard prepared by the Advisory Board nor the principles and standards of participation finance.