Damascus starts paying Iranian debts
Syria-Iran, Economics, 6/23/1999

Well-informed sources in Damascus said that Syria will start to pay the first of its debts to Iran at the beginning of July in a bank account to be opened in the Syrian central bank in the name of the Iranian government.

The payments come according to the text of an agreement signed by Syrian Finance Minister Muhammad Khaled al-Maheym and the director of the Iranian central bank, Nour Bakhsh, in May in Damascus.

The Syrian sources explained that the total Iranian debt is estimated at US $502 million excluding deducted interests of US $466 million. In May, President Hafez al-Assad and Iranian President Muhammad Khatami decided to settle the question of debts on the ground of a rate of exchange of 28 Syrian pounds (SP) per each US dollar which is a middle exchange rate between the official rate of SP 11 per US$ and the encouraging exchange rate of 45 SP per US$.

The sources indicated that the negotiations held between the Syrian minister of economy and foreign trade Muhammad al-Imadi and the Iranian minister of Housing Abdul Ali Zada "were difficult and detailed because of the persistence of the Iranians that the Syria side has to pay the profits which are estimated at US $466 on the ground that they are delay fees," after the Syrian side said that "profits are forbidden (Haram) in the Islamic religion.)"

However, these Iranian debts go back to the era of the Iraqi-Iranian war in which Syria sided with Iran. Its total values are US $834 million, of which Damascus repaid US $32 million. The sources said that the decision taken by President al-Assad and President Khatami has settled the problem. The sources added as saying that the agreement stated to pay the sum in Syrian pounds so as to be at a total value of 14, 078 billion Syrian pounds to be paid on ten annual installments and that the payment to be completed in July of the year 2008.

The same sources explained that the same agreement stated the sums are to be spend on the following matters " Buying a new premises for the Iranian embassy and a residence for the ambassador, building a hospital, a school, renovating religious sites, and several services projects carried out jointly in Syria and the establishment of a cement factory in Hama at a cost of US $198 billion.

Previous Stories:
  Iranian president, speaker confer with Syrian Parliament speaker   (6/18/1999)
  Iranian energy minister holds talks in Damascus   (6/16/1999)
  Middle solution for Syrian debts to Iran   (6/10/1999)
  Syrian Cabinet briefed on results of Khatami's visit to Damascus   (5/19/1999)

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