Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 135: To ask the Minister for Finance the discussions he has had with the banking sector regarding the introduction of Ijara Islamic mortgages; and if he will make a statement on the matter. [6479/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have had no specific discussions concerning the introduction of such mortgages. However, I understand that the Irish Banking Federation has been considering the issue of Sharia compliant mortgages and I look forward to the outcome of their examination of this issue in due course.

The Deputy may wish to note that there are various types of Sharia compliant mortgages including the Ijara mortgage referred to in the Deputy's question. An Ijara mortgage involves a lease to buy arrangement. A Musharaka mortgage is a similar arrangement but includes shared ownership of the property throughout the life of the loan. Murabaha mortgages, on the other hand, basically involve the property being purchased by the financial institution and sold on at a profit to the consumer in lieu of interest.