Legislation of Interest-Free Finance Coordination Board

The Prime Ministry’s Circular[1]

No: 2015/17[2]

Interest-free finance has been one of the agenda items of international institutions and the Group of Twenty (G20) chaired by Turkey in 2015 with the amount of its financial assets reached recently and its high potential.

The 10th Development Plan and 64th Government's Program aim to develop interest-free finance sector and ensure coordination in this respect. Interest-free finance is expected to contribute to deepening of financial sector and strengthening of financial stability.

Within this context, so as to advance sound participation banking and participation insurance as well as interest-free finance system in general, and to contribute to Turkey's vision of becoming an international finance center, ‘Interest-Free Finance Coordination Board' was established.

The Board, under the chairmanship of the Minister responsible for Undersecretariat of Treasury, composed of the Undersecretary of Ministry of Development, Undersecretary of Ministry of Finance, Undersecretary of Treasury, Governor of Central Bank of The Republic of Turkey, Chairman of Banking Regulatory and Supervision Agency, Chairman of Capital Markets Board of Turkey, CEO of Borsa İstanbul, Chairman of Participation Banks Association of Turkey, Chairman of Participation Insurance Association. The Board can form committees, sub-committees, advisory groups, and temporary and permanent working groups, if needed.

The Board shall convene at least three times per year as well as Chairman's call for more meetings. In addition to relevant ministries and public institutions; representatives from universities, non-governmental organizations, occupational groups and the private sector might be invited to participate in Board meetings and might take part in committees and working groups.

Undersecretariat of Treasury shall execute secretariat duties of the Board and ensure cooperation and coordination between the Board and relevant public institutions, private sector, non-governmental organizations, as well as monitor the implementation of the Board’s decisions by relevant institutions.

It is kindly requested that the all ministries, public institutions shall provide all the necessary contribution and support and undertake the related tasks and responsibilities in order to perform the Board’s works in a holistic manner.

                                                                        Ahmet DAVUTOĞLU
                                                                          Prime Minister    

[1]Unofficial translation

[2] The Prime Ministry Circular numbered 2015/17 published in Official Gazette on 15 December 2015