Ministry of Finance extends deadline for settlement of non-performing debts by an additional month

The Minister of Finance, Mohamed Yousser Barnieh, issued a decision to extend the deadlines for the settlement of non-performing debts and credit facilities with public banks for an additional month, based on the provisions of Legislative Decree No. 70 of 2026.

According to the Minister of Finance, the decision aims to give borrowers more time to settle their financial situation and benefit from the exemptions and benefits provided by the decree.

The Minister stressed that the extension decision comes in response to the wide requests of defaulters and economic actors, and to enable them to complete the required documents and make the necessary payments within the current economic conditions, stressing that the extension gives debtors and owners of establishments an additional opportunity to rearrange their financial obligations without imposing additional burdens or fines during the extension period.

The most prominent dimensions of the extension decision

The decision allows defaulting borrowers to reschedule their debts with public banks without delay fines during the extension period, which reduces the financial pressure on individuals and establishments, and the decision contributes to the activation of collections within public banks, which enhances bank liquidity and restores part of the frozen funds.

The  extension decision is expected to give owners  of troubled industrial and agricultural projects an opportunity to follow up on their productive activity, which will reflect positively on the economic work cycle.

The extension came in response to the demands of commercial and industrial entities that faced difficulties in completing the settlement procedures during the previous deadline, making the decision a step in support of the stability of the business environment.

Penalty Exemption Rates

Legislative Decree No. 70 of 2026 provides a wide package of exemptions and facilities for troubled borrowers, the percentages of which vary according to the size of the debt and the type of currency.

Under the provisions of the decree, debt holders not exceeding 100 million Syrian pounds will receive a full exemption from deferred interest, fines and contractual interest upon payment within 3 months, while the exemption is limited to deferred interest and fines only if the payment is made within six months.

As for debts exceeding 100 million pounds, their owners benefit from a 50% exemption from contractual and deferred interest and fines upon repayment within three months and 30% upon repayment within 6 months, with the possibility of rescheduling for up to three years after paying 15% as a goodwill payment, and obtaining an additional exemption of 25% upon full commitment to payment.

With regard to foreign currency debts, the decree grants a full exemption of 100% from contractual and deferred interest and fines upon payment within three months, while the debtor receives a 50% exemption from contractual and deferred interest in addition to a full exemption from fines upon payment within 6 months.