First Documentary Credit for Fuel Imports in 14 Years

The Central Bank of Syria announced in a statement on Sunday that it executed a documentary credit for the Syrian Petroleum Company, in coordination with a major US bank. The credit is intended for the supply of petroleum products from a major global company, and is the first of its kind in 14 years.

Deal Details

According to the statement, the first petroleum products supply deal was concluded between the Syrian Petroleum Company and Saudi Aramco. The bank said the deal opens a new channel for securing fuel supplies to Syria through direct commercial and banking arrangements.

The Documentary Credit

The bank stated that it executed the first documentary credit 14 years after the last one was issued, providing the banking instrument needed to carry out the deal. It added that the credit establishes a financing and settlement mechanism for trade linked to petroleum products supply.

Role of the Central Bank

The bank said the development matters beyond the deal itself, as it reflects its role in:

• Preparing the banking channels needed to finance strategic trade.
• Coordinating documentary procedures with the parties concerned.
• Supporting regular fuel supplies and the reliability of commercial transactions through the official banking system.

The bank affirmed that it is working with the Syrian Petroleum Company to develop the financial and documentary arrangements needed to facilitate supply operations, which, according to the statement, supports continuity of supplies and meeting local market needs.

Earlier Banking Contacts

On 5 October, a Central Bank delegation headed by Governor Safwat Raslan met the US Federal Reserve Bank in New York to discuss practical aspects of the banking relationship between the two sides, foremost among them the use cases of the Central Bank of Syria's account at the bank.