CBS suspends credit facilitations to protect SYP against speculation

Damascus, SANA – The Central Bank of Syria (CBS) took a decision to suspend granting credit facilitations in the Syrian Pound (SYP) that are given for insurances in the form of deposits in foreign currency.

According to a press release by the CBS, the new decision came in line with the Bank’s efforts to keep the exchange rate stable and combat speculation attempts by clients, cases of which have been witnessed recently.

The measure, the statement said, is part of the CBS’s continual intervention efforts to prevent a rise in exchange rate and secure the necessary foreign currency to meet the market’s needs.

Indirect facilitations, however, are still available by the banks authorized to deal in foreign currency.

On a relevant note, the CBS also issued a statement saying that law no. 30 on extending decree no. 8 for 2014 for 2 months, which allows applicants to reschedule loans, will help protect the banking sector and increase cash flow, with the extension taking into account the large amount of loans given to economic enterprises and banks’ interests in light of the current situation in the country.

The aforementioned decree allows for rescheduling overdue loans for owners of economic, tourist, industrial, commercial, services, or other such projects taken from banks, providing exemptions from fines and fees for the overdue payments as long as they are paid before the end of the decree’s duration which was originally three months starting on 2/2/2014.

Haifa Said / Hazem Sabbagh

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