A user's guide

Author: | Published: 1 Dec 2007

Earlier this year, the Loan Market Association (LMA) issued a Users Guide to Islamic Finance Documents. Although it describes itself as a user's guide to Islamic finance documents, it does not support a suite of LMA pro-forma Islamic finance documents, and the LMA has no intention at present to produce such a suite. The Users Guide describes itself as providing "limited guidance only on how terms commonly seen in the primary documents are imported into a typical Islamic facility". This remit reflects the multiplicity of views that the Islamic finance sector holds. Different approaches are acceptable in different regions.

Although there has been large growth in the use of Islamic financing techniques and a rapid evolution of techniques in the past few years, development and change is still too fast to contemplate the establishment of LMA pro-forma documentation. This is especially the case when the sector's rapid evolution combines with...