The Central Bank of Syria announced the execution of the first documentary credit in favor of the Syrian Petroleum Company, after a gap lasting 14 years, in a deal with Aramco Trading Company and in coordination with a major American bank. This measure aims to develop import financing mechanisms and enhance the regularity of oil derivatives supplies, according to economic experts.
In the same context, Dr. Abdul Rahman Muhammad, a professor of finance and banking at the Faculty of Economics at Hama University, believes that this step represents a return to an official tool for financing international trade after years of reliance on informal arrangements. He explains that the documentary credit transfers the payment commitment to the bank according to agreed terms, providing a more organized framework for transactions compared to advance cash payment.
For his part, Dr. Khaled Turkawi, an expert in Middle Eastern economics, describes the documentary credit as an official bank commitment that protects the rights of the buyer and the supplier, and is considered a globally accepted tool. He emphasizes that this mechanism allows for a transition from sporadic and costly purchases to more regular and sustainable supplies, thereby supporting market stability and the continued operation of the transport, electricity, and production sectors.
Dr. Fadi Ayyash, an economic researcher, added that importing through intermediaries and shell companies has raised costs in recent years, noting that direct dealing could reduce these links and lower the total cost per barrel. He also pointed out that using official banking channels can reduce transfer and intermediary costs, enhance transparency, and support the restoration of international banking relations.
He noted that the execution of the credit came after steps to reintegrate the Syrian banking sector into the international financial system, the most prominent of which was the reopening of an account at the Federal Reserve Bank in New York on February 28, 2026. The Central Bank of Syria confirmed on October 11 of this year that this development reflects its role in preparing the necessary banking channels to finance strategic trade.
Dr. Abdul Rahman Muhammad clarified that measuring the economic impact requires monitoring the number and value of subsequent credits, and the extent to which dealings expand from one American bank to European or regional banks. He also indicated that the sustainability of this mechanism is linked to the development of the external regulatory environment and addressing challenges related to weak bank capitalization.
Dr. Fadi Ayyash emphasized the importance of studying the extension of this mechanism to wheat, medicines, and industrial and agricultural inputs, alongside developing the capacities of public and private banks. He also pointed out that expanding official dealings could facilitate the reception of financial transfers and encourage Syrian expatriates to transfer their money through banks rather than exchange networks.
Source: Syrian Arab News Agency (SANA)
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