The Turkey Asset Fund (TVF) has signed an agreement with the Islamic Development Bank's company. The result of this agreement should be the creation of a new mortgage product in cooperation with the Islamic Development Bank. The leaders of the two companies are planning that all details on the creation of the new system will be discussed within 3 months.
TVF President Mehmet Bostan said that he signed a preliminary agreement with the ICD, and said: "We are now defining financial models that can be implemented in Turkey within the framework of the mortgage system."
Capital and equity ratios are not yet clear, but Bosten said that participating mortgage companies are planning to complete research on this issue within three months. It is planned that all work on the project should be completed within 9 months, but not more than 1 year.
Representatives of the Turkish Fund note that the new mortgage system in Turkey will have an increased demand, and will bring a variety of mortgage products to financial markets. Bostan said that this is the first precedent of the appearance of an Islamic product in the mortgage market. Bostan also said that they continued negotiations with the funds of other countries.
ICD Executive Director Khalid Al Abudi said that the growth of the mortgage sector is an important goal: "The expansion of the sector will increase the mobility of capital, and the economy will certainly react positively."
The Director of the Turkish Fund expressed the opinion that the creation of a new mortgage system will attract new investors to Turkey's financial market.