Damascus: Banking laws and the bourse in the beginning of March
Syria, Economics, 2/16/2001

In its issue published on Wednesday, the Syrian daily al-Thawra said that the Syrian people's Assembly PA will discuss in its ordinary session that will start February 17 tomorrow (Saturday) the law provides for the establishment of joint and private banks, the issue of banking secrecy as well as the law to establish a stock market approved on Tuesday by the Syrian government.

Meantime, the director of the Lebanese al-"Itimad bank" Sami Nuseiri said he is preparing to enter Syria through the credit cards. But this statement by the Lebanese bank director was denied by the director of the commercial Bank of Syria.

Similarly, the Syrian daily Tishreen said on Wednesday that the economic report for the year 2000 indicates only a growth rate of 1% when the role of oil is excluded and that inflation rate reduced to 1.5%.

Al-Thawra daily expected the laws on establishing joint and private banks, the banking secrecy project, establishing a tock market all to be completed by the beginning of March. The Syrian state- run daily added that many Arab and foreign banks started exploration of the Syrian market and that many of them started to but real-estates in the city of Damascus and other Syrian provinces.

The al-Thawra attributed reasons behind the intention of the Lebanese banks to work in Syria to the " stalemate in the Syrian market and to the vast move that can be provided by the Syrian markets to these banks if the private and joint banks law will be released."

The Syrian daily al-Thawra quoted the director of the Lebanese- Swiss Bank Fadila al-Sabah as saying that the Lebanese Banks are preparing to work in Syria, just waiting the issuance of the private and joint banks law together with its clear financial and executive instructions.

She explained ( al-Sabah) that working in the framework of the free trade " does not meet the ambitions, nor permit to enter the relatively wide Syrian market."

In this respect, statements were contradictory between the director of the Lebanese " Itimad Bank" and the director of the Commercial Bank of Syria on the rights of the two sides to enter credit cards to the Syrian market. Sami Nuseiri said he " is currently discussing with the Syrian government the question of entering the Syrian market through credit cards either by the mechanized exchangers or through the electronic buying machines in addition to the " smart cards." He explained that dealing with this card " the smart card" will be in all currencies as the al-"Itimad" bank will give the service, the information and the experience and programs needed for the credit cards in Syria.

But the director of the commercial bank of Syria Mahmoud Mithqal denied that the Credit system to come to Syria without considering the Commercial Bank of Syria a representative for the renowned international companies like " Visa." and "MasterCard." He simultaneously denied any talks with the Lebanese al-Itimad bank to this effect and noted that dealing with the credit card should first start with the " local currency ( Syrian pounds) and then with the hard currencies."

Mithqal did not deny that the Syrian commercial bank lacks the necessary infrastructure needed to launch the credit card as there are no mechanized exchangers and that the bank is not connected with the world companies working in this area. For its part, Tishreen said that the economic report for the year 2000 notes that the GNP, with the exception of the exploration industry did not exceed 1% and becomes 2.5% if the exploration industry ( oil) will be added at fixed prices; while the inflation rate was almost 5.8% but with excluding the oil industry it recedes to 1.5%.

Upon highlighting the economic report, the Syrian daily Tishreen on Wednesday said that the surplus trade balance for the year 2000 of 48 billion Syrian pounds was not attained as a result of the increase of exports of commodity and service, rather as a result in the increase of oil prices in spite of the reduction in its exploration and the excavated amounts from 33.3 million cubic meters in 1999 to 31.8 million cubic meters in the year 2000.

The report also showed a shrinking in populations growth in Syria as population growth rate reduced to less than 2.7%. Tomader.

Previous Stories:
  European Investment Bank second visit to Syria   (2/1/2001)
  The minimum rate for wages in Syria is 300% bellow minimum living standards   (1/24/2001)
  View on the decision to open private banks in Syria   (1/22/2001)

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