The European Investment Bank (EIB) will allocate more than $142 million (€165 million) in loans to finance a number of developmental projects in Syria. The first contract, to be signed by March, will provide Syrian hospitals with $86.2 million for new equipment purchases, the bank announced at a press conference.
Director General of EIB’s operations Jean-Louis Biancarelli stated that Syria would receive a reasonable 25-base point interest rate above London InterBank Offering Rates (Libor) on the loans. Other agreements expected before the summer are a $38.7 million loan for modernizing Port Tartus and $17-$19 million for small and medium enterprise (SME) development. Funds directed to telephone line development, road networks and environment preservation are also expected in the near future.
EIB reinstated its activities in Syria in 2000, having frozen them in 1992, following the resolution of bilateral debt issues between Syria and European Union (EU) member states. The bank issued a $64.6 million loan to Syria in 2000 for the expansion and upgrading of the Syrian electricity transmission system.
In the 20 years following the first co-operation agreement between Syria and EIB, the bank has lent the country $84.4 million under the first two financial protocols for the Aleppo-Tal Kojak and Damascus-Jordan highways, the Mehardeh power station, the drainage system of the lower Euphrates and the Al-Thawra irrigation network near Lattakia. The bank provided three loans for electricity projects in Syria, totaling €210 million in 2000 and 2001. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
