nz news, page-5

Jumping from NZ over to Dubai ...remember MFS set up shop there?

My last posts article made me aware of different accounting practices..and makes me wonder how you would mix the two methods? or if misunderstanding might occur....

ie..
" Fortress's $150 million financing pact, arranged in December for Arcapita, was believed to be the first U.S. bankruptcy loan fully compliant with Islamic Sharia law. In its Monday filing, Arcapita said Goldman has agreed to provide an extra $25 million, bringing the loan up to $175 million.

Like all the loans Arcapita has secured during its bankruptcy, the Goldman financing is a Sharia-compliant "murabaha," a common Islamic financing structure where a lender sells commodities to a borrower, who then sells the commodities to a third party.

Under these "cost-plus financing" murabahas, Arcapita buys commodities from Goldman at a marked-up price to ensure the seller profits on the deal.

Arcapita then sells those commodities, providing the bank with an immediate cash infusion. To comply with murabaha financing, Arcapita pays Goldman for the commodities on deferred terms."continues

http://www.nasdaq.com/article/arcapita-seeks-new-bankruptcy-loan-from-goldman-20130528-00737


Not sure I follow that but the method is used , I read, because the sharia compliant financing do not charge interest..

I have been following the local co. Sunland/ Dubai situation over a property deal and its concerning particularly as the two countries (may)have such different financing methods/thinking etc...or so it seems but many transactions must have occurred...just hoping for a good understanding extended between the countries about any different thinking..I cant follow the details of this one/situation/case either..? but put it next to' not charging interest 'etc and there might be something for us Aussies to understand,imo.

see the latest re this here...

http://www.theaustralian.com.au/news/breaking-news/asic-investigation-needs-dubai-input/story-fn3dxiwe-1226657307908

BTW does anyone remember what MFS was doing over in Dubai?
or didnt it get going?

not issues for PIF though..imo