Leaked documents shed light on Syria’s Inability to repay Iran’s debts
DAMASCUS, Syria (North Press) – Recently leaked official Iranian documents, obtained from an Iranian opposition hacker group, have provided insight into the relationship between the Syrian and Iranian governments, including the issue of Iranian debt recovery.
The leaked documents revealed draft agreements between Damascus and Tehran, including a draft called “Memorandum of Understanding for Strategic Cooperation” signed by Presidents Ibrahim Raisi and Bashar al-Assad.
The documents highlighted that Syria has been mired in a significant crisis since early 2011, with no solution having been agreed upon to address it so far.
They stressed that the Syrian economy is facing numerous challenges, such as the devaluation of the Syrian pound against the dollar, largely due to the European and American sanctions, particularly the Caesar Act which which was enacted in 2019.
International estimates suggest that Syria requires approximately $500 billion for reconstruction and the rebuilding of its infrastructure.
The documents noted that the Syrian people are grappling with a fuel shortage and a wheat crisis, resulting in a severe shortage of bread, which has fueled public dissatisfaction. The difficult circumstances have made economic activity in Syria exceedingly challenging.
The leaked documents also revealed that Iran has provided Syria with multiple supply lines, including goods and oil, and is working on signing several agreements and deals with Syria as a cover for repaying part of the debts.
Moreover, one document highlighted the presence of 14 Iranian economic organizations and institutions actively operating in Syria. The document underscored that coordination between these entities is part of a crucial program aiming at engaging with Syrian ministries and organizations. The documents stated the Iranian embassy and ambassador to Syria should focus on this issue as a primary point, in line with a decision issued by Iranian President Ebrahim Raisi.
The documents mentioned that Iran rushed to help the Syrian government by sending two million barrels of oil monthly over the past 10 years, and this quantity increased to three million barrels monthly with the approval of Iran’s Supreme National Security Council.
Regarding the issue of debt recovery, the leaked file outlined the necessity of requesting Syria to repay a portion of the Iranian debts. However, the documents acknowledged that recovering Iranian debts from Damascus is challenging due to the prevailing economic crisis in Syria and is currently deemed practically impossible.
Additionally, the documents stated that the initial credit line, amounting to $1 billion, which was disbursed based on the decisions of the Iranian Supreme National Security Council, has not yet been repaid by Syria.
Furthermore, approximately $270 million has been allocated to implement the second credit line, estimated at $1 billion. The documents indicated that the main reason for the non-completion of the remaining funds transfer under the second line is the liquidity shortage in the Iranian central bank.