Damascus, March 20 (SANA) President Ahmad al-Sharaa issued a decree introducing a framework to settle non-performing loans in public banks, including exemptions from late-payment interest, contractual interest and penalties, and measures to reschedule debts exceeding 100 million Syrian pounds.
Decree No. 70 of 2026 targets non-performing loans, offering full or partial waivers on interest and penalties depending on the timing of repayment.
Borrowers who settle their debts within three to six months may qualify for significant exemptions, while those with debts exceeding 100 million Syrian pounds can apply for rescheduling for up to three years.
The decree requires a 15 percent upfront payment for rescheduled loans and allows adjustments to interest rates in line with current banking standards.
It also permits repayment in foreign currency or its equivalent in Syrian pounds at the official exchange rate set by the Central Bank of Syria.
Legal proceedings against borrowers will be suspended once settlements are reached or rescheduling agreements are signed, with proceedings resuming if borrowers fail to meet the agreed terms.
The measure applies to loans granted by public banks before the decree’s entry into force, with some exceptions, including facilities provided by the European Investment Bank.
The Finance Ministry will issue implementing instructions and may extend application deadlines. The decree takes effect upon publication in the Official Gazette.
ABD