Final Report Feasibility Study to develop new options for private sector investment financing in the Syrian Arab Republic EIB Final Report October 2005 - March 2006 Prepared by: Richard Crayne Bruce Harrison Rauf Khalaf Edward Owen With contributions from: Fatma Dirkes, Senior Project Manager, BAI Willemien Libois, Project Manager, BAI Raed Karawani, Legal Consultant Fahed El-Mohamad, Local Expert Bankakademie Damascus Office Bankakademie International Malki, Abdel Mounem Riad Street Sonnemannstr. 9-11 Kouatly Building No. 5 60314 Frankfurt am Main Damascus Germany Syria Phone: +49-69-154008-619 Tel: +693-11-3716332 Fax: +49-69-154008-670 Final Report With further contributions from: Syrian Government: Dr. Abdullah Dardari Deputy Prime Minister, Economic Prime Minister's Office Affairs Nabil Barakat Deputy Head Prime Minister Office SPC Nader Al-Sheikh Ali Director General of International Prime Minister Office SPC Cooperation Marwin Attar Consultant Prime Minister Office SPC Dr. Ghassen Al Habash Deputy Minister Ministry of Economy & Trade Dr. Amir Al Attar Director, Banking Affairs & Insurance Ministry of Economy & Trade Abd Al Razak Abd Al Maged Director, Interior Commerce Ministry of Economy & Trade Ibrahim Ibrahim Manager, Companies Registration Ministry of Economy & Trade Dr. Mohammad Al-Hussein Minister Ministry of Finance Dr. Mohammed Hamandoush Deputy Minister, Public Expenditure Ministry of Finance, CMC1 Mrs. Basmah Hafez Manager Banks & Insurance Ministry of Finance Farouk Ayash Senior Banking Advisor Ministry of Finance Marouf Al Hafez Public Debt Fund Ministry of Finance Omar Al Elabi Public Enterprises Ministry of Finance Nizar Shurbaje Department Revenue Ministry of Finance Mohee Deen Habeeb Treasury Ministry of Finance Jamal Medelgi Income Tax Ministry of Finance Dr. Mohamed Ghassan Minister Ministry of Industry Thayara Fouad Al-Lahham Deputy Minister Ministry of Industry Dr. Diala Alhaj Aref Minister Ministry of Social Affairs & Labour Dr. Issa Maldaon Deputy Minister Ministry of Social Affairs & Labour Central Bank of Syria Dr. Adib Mayaleh Governor Central Bank of Syria Dr. George Elouzon Manager Foreign Division Central Bank of Syria Dr. Erfan S. Al Azmeh Economic Advisor, Member CMC Central Bank of Syria Dr. Hichan Mutewalli Member, CMC Central Bank of Syria Public Banks Mr. Faysal Kassem Chairman and GM Agricultural Bank Mr. Maan Zeid Mirza Deputy GM Agricultural Bank Mr. Zedan Sa’adat Credit and Loans Manager Agricultural Bank Ms. Seham Mallouh Planning Manager Agricultural Bank Mr. Ahmad Kolaeb Studies Department Agricultural Bank Mr. Saed Shana’a Accounting Department Agricultural Bank Mr. Fayzeh Wanous Translation Agricultural Bank 1 Credit and Monetary Council, Central Bank Feasibility study to develop new options for private Contacts sector investment financing in the Syrian Arab Republic Page i Final Report Dr. Douraid Dergham Chairman and GM Commercial Bank Ms. Raghdaa Al Yaffee, Credit Manager Commercial Bank Ms. Suher al Halabi Manager of Planning Department Commercial Bank Ahmad Diab NA Commercial Bank Mr Salah Shehab NA Commercial Bank Dr. Ali Kanaan Chairman and GM Industrial Bank Dr. Khaled Al Zamel Manager of Studies Industrial Bank Mr. Adnan Al Okleh Legal Department Manager Industrial Bank Ms. Abeer Sakbani Technical Manager Industrial Bank Mr. Nuhad Haydar Deputy GM-credit Industrial Bank Mr. Shehadeh Othman Deputy Accounting Manager Industrial Bank Ms. Sawsan Barzawi Deputy Planning Manager Industrial Bank Dr. Ibrahim Al Falah Administration Officer Industrial Bank Mr. Motee Shalabi Administration Officer Industrial Bank Ms. Hayfaa Al Assadi Administration Officer Industrial Bank Dr. Abdulrazzak Hasani Chairman and GM Popular Credit Bank Mr. Husain Abdul Wahab Deputy GM Popular Credit Bank Ms. Wafaa Nakhleh Legal and Administration Manager Popular Credit Bank Mr. Adnan Hassan Accounting Manager Popular Credit Bank Mr. Sharif Abbddo Credit and Loans Deputy Manager Popular Credit Bank Dr. Moulham Dibo Chairman and GM Real Estate Bank Mr. Akram Darwish Credit Manager Real Estate Bank Mr. Anas Fayomi Legal Department Manager Real Estate Bank Ms. Nada Nabilsi Financial Manager Real Estate Bank Ms. Haifaa Younes Chairman and GM Savings Bank Mr. Hussain Al Oudeh Credit and Loan Manager Savings Bank Ms. Layla Attar Financial Manager Savings Bank Private Banks2 Mohamad Haykal Deputy GM Arab Bank, Syria Bassel Hamwi Deputy Chairman & GM Bank Audi Syria Mr. Antoine G. Wl-Zyr, Deputy General Manager Bank Audi Syria Mr. Mahmoud Al Kurdy Chief Financial Officer Bank Audi Syria Ms. Zeina El Mohamad Finance and Accounting Department Bank Audi Syria Dr. Rateb Shallah Chairman Bank of Syria & Overseas George Sayegh GM Bank of Syria & Overseas Mr. Jamil Choucair Credit and Loan Manager Bank of Syria & Overseas Ms. Hanadi Ayoubi NA Bank of Syria & Overseas Pierre Ducos GM BEMO Nada Saliba Head of Credit Department BEMO Noureddine Maamar Branch Manager, Damascus BEMO Walid M. Abdel Nour Deputy General Manager BYBLOS Bank Jean V. Bassil Assistant General Manager BYBLOS Bank Didier Drullion Directeur Général, Issoria Groupe Caisse d’Epargne Sultan Alzu’bi GM Int. Bank for Trade & Finance Mr. Aiham Mannaa Credit Officer Int. Bank for Trade & Finance Ms. Rima Malek Credit Officer Int. Bank for Trade & Finance 2 Of the banks the Minister invited to the 25 January 2006 Interim Report Presentation, and surveyed by the Team, only Banque Bemo Saudi Fransi, was not represented. Feasibility study to develop new options for private Contacts sector investment financing in the Syrian Arab Republic Page ii Final Report Other Finance Institutes Dr. Bian Harb General Director ACU Ms. Huda AL Masri Financial Manager ACU Mr. Ahmad Shibib Assistant Financial Manager ACU Maysa Salman Responsible Internat. Cooperation ACU Khalil Hosny Khalil Community Development Officer ACU Embassies and Donor Officials (including projects) Aleem Walji, Executive Director Aga Khan Foundation Nasser B. Al-Kahtani, Executive Director AGFUND Riyadh, Saudi Arabia Jebrin A. Akjebrin, Director, Projects AGFUND, Riyadh, Saudi Arabia Philippe Mongars Chief de Service AMF Banque de France Susan Khan Capital Market Expert AMF Consultant Ulrich Bindseil Deputy Head of Division AMF European Central Bank Mohamed El-Hadj Chief of Mission, Abu Dhabi, UAE Arab Monetary Fund (AMF) Yisr M. Barnieh Economist, Abu Dhabi, UAE Arab Monetary Fund (AMF) Peter Bandilla Loan Officer, Syria EIB, Luxembourg, LU Brain Jenkins Short-Term Consultant EIB/SME Project Bob Leigh Team Leader EIB/SME Project James Mair SME Finance Expert EIB/SME Project Seifeldin Usher Head, Trade & Investment Embassy UK Maysa Mustafa Officer, Trade & Investment Embassy UK Sylvie Sturel Head, French Economic Mission Embassy France Roland Seeger Economic Attaché Embassy Germany Dr. Michael Grewe Regional Development Policy Embassy Germany (German Federal Ministry for Economic Cooperation) Damino Francovigh Economic Attaché, First Secretary Embassy Italy Miguel Iriso Economic Attaché Embassy Spain Jose Navarro Cooperation Attaché Embassy Spain (Spanish Cooperation Agency) Ferit Orcun Basaran Economic Attaché Embassy Turkey Todd Holmstrom Attaché Embassy United States Mr. A.M. Fontana Head Economic Section EU Delegation, Syria Fabrice Ferrandes NA, Economic & Trade EU Delegation, Syria Arto Valjas NA, Private Sector Development & EU Delegation, Syria Finance Vassilis Petrides Project Coordinator EU Delegation, Syria Dr. Constantin Zaman Team Leader EU Institutional & Sector Modernisation Facility Heiko Gross Institutional Development Expert EU Institutional & Sector Modernisation Facility Henk Verbrugge Municipal Finance Expert EU MAM Project Ms Joumana Jabbour Commercial Lawyer, Consultant EU MAM Project Jane Tait Tax Expert, Team Leader EU Modernisation of the Ministry of Finance Peter Wagner Treasury, Expert, Budget & EU Modernisation of the Accounting Ministry of Finance Manfred Rientz Team Leader EU BSSP II Ali Sabet Senior Training Expert EU BSSP II Brian Kettell Central Bank Consultant EU BSSP II Feasibility study to develop new options for private Contacts sector investment financing in the Syrian Arab Republic Page iii Final Report Mouayed Makhlouf Senior Investment Officer IFC Murat Sultanov Leasing Legal Advisor IFC Ola Nour Leasing Specialist IFC (PEP) Kamila Makhudova Leasing Specialist IFC Mark Ahern Public Expenditure Management IMF, Middle East Technical Advisor Assistance Centre (METAC) Richard Allen Deputy Division Chef IMF, Fiscal Affaires Public Financial Management II Department Adbelaki Tazi Senior Economist IMF, Fiscal Affaires Department Patrick Mordacq Cour des Comptes IMF, Consultant, Public Finance Daniel Tonnasi Consultant IMF, Public Finance Olivier Benon Senior Economist IMF, Fiscal Affaires Department Kazuhide Nagasawa Resident Representative JICA Shigeru Otake Deputy Res. Rep. JICA Masahiro Yamashita State Planning Advisor JICA Sakher Mrishih Economic Officer JICA Dr. Jürgen Welschof Division Chief Middle East KfW Dr. Mohamad Kayyal Local Expert KfW John Paton Director SEBC George Catinis Aleppo Director SEBC Noha Chuck National Team Leader SEBC Roberto Rodrigueuz-Brana Senior Industrial Policy Advisor SEBC Daniele Mazzanti, Senior Administrator SEBC Paul Gadeggard Business Counsellor SEBC Ms Firyal Kherbek Business Consultant SEBC Ms Hala Rizk Business Consultant SEBC Amin El Sharkawi Head of Programmes UNDP Ms Faten Tibi Business Develop. Team Leader UNDP Mr. Ghimar Deeb Governance Team Leader UNDP Dr. Hashim S. Hussein Head UNIDO, Kingdom of Bahrain Radwan