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Repaying Documentary Credit

What is the Shariah perspective with regard to the bank extending financing for the import of goods in addition to issuing documentary credit?

The procedure for issuing documentary credit does not usually include the bank's extension of financing to the client; all of the financing is usually undertaken by the client himself. The bank serves as the client's agent and receives a fee for the services it performs with respect to the issuance of the documentary credit.

If the client advances only a part of the documentary credit's value and the bank expends some of its own funds, then it is necessary for the bank to receive a percentage of the profits according to the rules of a Musharakah rather than a fee.

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