Deadline Set for Bank Loans
Syria's Ministry of Finance has instructed a specialized committee to resolve the file of non-performing loans extended by the European Investment Bank (EIB) before the end of August 2026. Finance Minister Mohammad Yisr Barnieh reviewed the committee's settlement work on 13 August 2026 and pressed for the task to be completed within the fixed timeframe.
Committee and Its Mandate
The committee was established under Decree No. 70 of 2026 and is chaired by Judge Hazem al-Alousi. It holds regular meetings with borrowers who have defaulted on their loans, or with their representatives, to examine each case and work toward a settlement.
The minister called for accelerating the committee's work and preparing the required legislative text before the month ends, describing the aim as a balance between safeguarding public funds and easing the burden on distressed borrowers.
Legal Path to Settlement
Officials discussed the legal options available for handling defaulters, including the relief measures offered under Decree No. 70, which covers damaged enterprises. The decree applies debt-settlement provisions and governs the treatment of troubled credit facilities held at state banks.
The committee's periodic sessions are meant to review each borrower's circumstances individually and address the files before the settlement framework is finalized.
Background of the Decree
President Ahmad al-Sharaa issued Decree No. 70 of 2026 in March, setting out how public banks should settle debts and restructure non-performing credit facilities. Among its provisions are exemptions from late-payment interest, contractual interest, and financial penalties for eligible borrowers.
What Comes Next
With a firm deadline now attached, the committee is expected to finalize outstanding cases and submit the accompanying legal text within weeks. The move signals an effort to clear legacy debt from the books of state banks as the country works to rebuild its financial sector.
The directive was published by the finance ministry on 13 August 2026, underscoring the priority placed on closing the file within the current month.