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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World S.Korea parliament closer to sukuk issues approval Reuters - Sunday, December 5 Send IM Story Print SEOUL, Dec 4 - A South Korean parliamentary panel has reached a tentative agreement to give tax breaks to sukuk bonds, clearing the way for domestic companies to start to sell Islamic bonds as early as next year, a source said on Saturday. The finance ministry had proposed a revision to the tax code with the aim of treating sukuk as a bond so that South Korean issuers of sukuk could enjoy the same tax advantages as those applied to conventional bond issuers. An aide to lawmaker Kang Gil-bu from the ruling Grand National Party told Reuters that the tax subcommittee of the National Assembly had agreed on tax advantages for sukuk, after debating how to treat the Islamic bonds for about a year. "It will likely pass by no later than next week," the aide said by telephone, adding that under the timetable the bill would be in effect from next year. The next legislative step is to submit the draft bill to a broader committee before finally putting it to a vote at a plenary session. Islamic finance does not allow lending in return for interest, and so borrowing via instruments such as sukuk typically involves the sale and purchase or lease of specific assets. Islamic banking is one of the world's fastest growing financial sectors, according to industry estimates, which put annual growth at 15-20 percent. Recommend Send IM Story Print Related Articles Zain shareholder threatens to sue any Zain Saudi buyers Reuters - 17 minutes ago Brazil's Vale says it will list in Hong Kong AFP - 18 minutes ago WRAPUP 1-Obama touts S.Korea trade deal, looks for more Reuters - 35 minutes ago Australia's AMP: wealth plans focus of AXA merger AFP - 54 minutes ago MIDEAST STOCKS - Factors to watch - Dec 5 Reuters - 1 hour 4 minutes ago News Search Top Stories Ireland facing tough annual budget to secure bailout Ex-fugitive Nadir threatens to sue British police Madrid forces end to air controllers strike Serbs stick with Zimonjic and Troicki for doubles Gbagbo denounces foreign 'interference' in I.Coast More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended NASA finds new form of life... on Earth WikiLeaks arrest looms as site fights to stay online Obama on surprise Afghanistan visit, says US winning war Climate: Kyoto row rocks UN talks Suspect in Hollywood PR shooting commits suicide More Most Viewed » NASA finds new form of life... on Earth Pilgrims stone 'devil' as Muslims celebrate Eid World leaders scramble for funds to save the tiger US, S.Korea plan war games after N.Korean attack Obama gets 12 stitches after 'elbow in the lip' More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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