The Ministry of Finance Exempts EIB Loans from Decree 70
The Ministry of Finance has issued executive instructions for Decree No. 70 of 2026, which constitutes the broader legislative framework to address the file of non-performing loans in state-owned banks, in a move described as a qualitative shift in the way the government deals with this chronic file.
The executive instructions published by the Ministry on its official IDs today, Wednesday, May 6, 2026, included the details of the exemption mechanisms, whether for debts less than 100 million old pounds or those exceeding this ceiling, as small groups were granted a full exemption from contractual and deferred interest and fines upon payment before June 18, 2026.
In its executive instructions, the Ministry granted holders of debts exceeding 100 million old pounds on exemptions of up to 50% within the same period, while allowing payment in Syrian pounds or its equivalent in dollars according to the exchange rate bulletin issued by the Central Bank of Syria on the date of payment.
The instructions oblige the banks to open special trust accounts for each debtor to collect payments, so that the settlement is calculated only after the full balance is paid, and the instructions state: "The bank's management is obliged to open an independent trust account for each defaulting debtor under the name of "Settlement Deposits of Decree No. (70) of 2026."
Conditional suspension of prosecutions
Article 6 stipulates the temporary suspension of prosecutions and executive procedures for debtors who submit settlement requests, provided that the sale has not been made by public auction, with guarantees and precautionary measures in place until full payment, provided that the bank grants an immediate clearance after the completion of the payment and the cancellation of all measures before the judicial authorities.
Rescheduling large debts with strict terms
The executive instructions opened the door to rescheduling debts exceeding 100 million old pounds, according to specific conditions, most notably: paying 15% of the total debt as a goodwill payment to accept the application, installments of the remaining amount for up to 3 years, and postponing late interest and fines to the last payment, with an exemption of 25% upon full compliance, provided that specialized committees are formed in each bank to study and decide on the applications within a period not exceeding one month. The final lists are then submitted to the Minister of Finance for approval.
Monthly Monitoring and Extraordinary Powers of the Minister
The executive instructions oblige banks to provide the Ministry of Finance with monthly reports that include the number of applications, amounts collected and the size of debts that have turned from non-performing to regular, and granted the Minister of Finance the authority to extend the deadlines for one month if necessary, in addition to establishing a special account within the bank's books to carry over the settlement amounts, which can only be disbursed by written instructions from the Minister.
The instructions exempted credit facilities granted by the EIB from the provisions of the decree and re-applied the Rescheduling Law No. 26 of 2015 to debtors who did not benefit from the deadlines.
Decree No. (70) of 2026 was issued in March on the settlement of non-performing debts and credit facilities at public banks as part of a package of financial decisions issued in March 2026 to address non-performing debt files, facilitate the work of the banking sector and improve the living conditions in the country.