Iran’s Finance Minister declared that Syria has paid $500 million of debt to Teheran, as part of a debt totaling $1billion that dates back to the 1980’s when Iran sold oil to Damascus on easy credit terms in return for diplomatic backing in Iran’s 8-year war with Iraq.
Iran agreed in 1998 to write off interest arrears of $500 million and reschedule another $500 million of debt over 10 years. The latest repayment appears to have erased that debt and should improve Syria’s credit rating.
Syria's large external debt has long constituted an obstacle to its access to international capital markets and foreign loans. — (Lebanon Invest )
© 2000 Mena Report (www.menareport.com )