Danish banks to comply with Sharia laws

COPENHAGEN, Denmark, March 12 (UPI) -- Three local banks in the Jutland region of Denmark have agreed to offer mortgage loans that comply with Islamic laws, it was reported Wednesday.

Sharia laws forbid accepting or paying interest. To comply with that, the Danish banks have created what resembles a leasing agreement for Muslims in the area.

The bank owns the property until the terms of the lease, typically a 30-year agreement, are completed.

The three banks -- Sparekassen Farsø, Sparekassen Vendsyssel and Sparekassen Hobro -- with cooperation of a fourth -- Den Jyske Sparekasse -- created a company to handle the new Amanah Kredit mortgages.

Niels Mogaard, director of Amanah, said the arrangements were already in use, especially in the city of Aalborg, the Copenhagen Post reported.