Damascus, SANA- Dr. Wissam Fattouh, Secretary General of the Union of Arab Banks, announced Sunday the union’s intention to launch a project to restructure the Syrian banking sector with European partnership.
Dr. Fattouh confirmed to the Saudi Al Eqtisadiah newspaper that there are serious plans to implement the project, with ongoing communication with Syrian Central Bank officials to discuss implementation methods.
He noted that the previous regime left a heavy economic legacy that the new government will face in the coming period, representing significant challenges.
Fattouh added that the project spans three years and includes developing the banking sector’s infrastructure and training and qualifying banking staff in cooperation with the German Central Bank.
He emphasized the necessity of having effective strategies to handle debts by establishing specialized companies for managing distressed assets—a model used by countries like the United States and Malaysia.
He added that one of the potential solutions is to allocate a portion of the uncollectible debts to asset management companies, which will help mitigate the effects of the financial crisis.
Fattouh clarified that the Syrian banking sector needs to strengthen its capital base to enable it to withstand increasing risks, with a gradual move toward privatizing public banks to improve efficiency and increase confidence.
He underlined the importance of improving internal compliance mechanisms and enhancing financial inclusion through the use of digital banking technologies.
Syria is facing significant challenges in combating money laundering and terrorism financing amid ongoing international sanctions, Fattouh said.
The Union of Arab Banks is an organization responsible for promoting cooperation between Arab banks, developing Arab financial businesses, and enhancing the financial role of Arab banks in the Arab world.
Ruaa al-Jazaeri
