Syrian Industrialist Calls For Recovering Funds Frozen in Lebanese Banks

A view of Lebanon’s Central Bank building in Beirut. (Reuters)
A view of Lebanon’s Central Bank building in Beirut. (Reuters)
TT
20

Syrian Industrialist Calls For Recovering Funds Frozen in Lebanese Banks

A view of Lebanon’s Central Bank building in Beirut. (Reuters)
A view of Lebanon’s Central Bank building in Beirut. (Reuters)

An established Syrian industrialist called Sunday on the government in Damascus to act for recovering the Syrian funds stuck in Lebanese banks.

Fares Shebahi, the chairman of Syria's Federation of Chambers of Industry and head of Aleppo's Chamber of Industrialists, said that “it is no longer a secret to anyone that the Syrian State needs every lira it can get, today before tomorrow.”

In a post on his Facebook account, Shehabi said he could not understand the lack of official action in this regard.

He estimated the amount of Syrian funds frozen in Lebanon at $20 billion and accused what he said were “Lebanese banks thieves ” of looting the money.

Shehabi then stated that a Jordanian businessman was capable of seizing the properties of some Lebanese banks abroad to collect his own deposits at Lebanese banks estimated at $40 million.

He called on the government to move through the intermediaries of international legal companies to collect what it can from the Syrian funds.

Economic sources in Damascus told Asharq Al-Awsat that Syrian traders, industrialists, and businessmen had previously proposed, during their meetings with government officials, to act in order to recover the frozen Syrian funds.

Their request came after Syrian President Bashar al-Assad said in a speech after being sworn in as president for a fourth term, that estimates suggest that the frozen funds are worth between $40 billion and $60 billion.

In a previous comment, Syrian industrialist Atef Tayfour had suggested that Syrian banks buy shares in Lebanese banks in exchange for their clients’ deposits abroad, and transfer them to a cash balance in Syrian pounds at home.

Lebanese banks have locked depositors out of their accounts and blocked transfers abroad since the start of the country's crisis in late 2019.

Many Syrian front companies had long circumvented Western sanctions by using Lebanon's banking system to pay for goods which were then imported into Syria by land.

But since the financial crisis in Beirut, Syrian businessmen could no longer use Lebanese banks, which led to the deterioration of the value of the Syrian pound to record levels.

Lebanese media outlets have questioned the Syrian figures circulating about the volume of Syrian deposits in Lebanese banks, especially since Lebanese banks have avoided receiving Syrian deposits since the outbreak of tension in Syria in 2011 for fear of international sanctions.

They said most of the Syrian deposits date back to before 2011, and a large part of them were withdrawn during the war in Syria.

In the absence of official figures due to Lebanon’s Banking Secrecy Law that prevents Lebanese banks from disclosing the size of their deposits, observers estimate that the volume of frozen Syrian funds in Lebanon ranges from $8 to $20 billion.



Türkiye Backing Syria’s Military and Has No Immediate Withdrawal Plans, Defense Minister Says 

Turkish Defense Minister Yasar Guler attends a signing ceremony of a memorandum of understanding on establishing a mine countermeasures naval group in the Black Sea, aimed at clearing mines floating there as a result of the war in Ukraine, in Istanbul, Türkiye, January 11, 2024. (Reuters)
Turkish Defense Minister Yasar Guler attends a signing ceremony of a memorandum of understanding on establishing a mine countermeasures naval group in the Black Sea, aimed at clearing mines floating there as a result of the war in Ukraine, in Istanbul, Türkiye, January 11, 2024. (Reuters)
TT
20

Türkiye Backing Syria’s Military and Has No Immediate Withdrawal Plans, Defense Minister Says 

Turkish Defense Minister Yasar Guler attends a signing ceremony of a memorandum of understanding on establishing a mine countermeasures naval group in the Black Sea, aimed at clearing mines floating there as a result of the war in Ukraine, in Istanbul, Türkiye, January 11, 2024. (Reuters)
Turkish Defense Minister Yasar Guler attends a signing ceremony of a memorandum of understanding on establishing a mine countermeasures naval group in the Black Sea, aimed at clearing mines floating there as a result of the war in Ukraine, in Istanbul, Türkiye, January 11, 2024. (Reuters)

Türkiye is training and advising Syria's armed forces and helping improve its defenses, and has no immediate plans for the withdrawal or relocation of its troops stationed there, Defense Minister Yasar Guler told Reuters.

Türkiye has emerged as a key foreign ally of Syria's new government since opposition groups - some of them backed for years by Ankara - ousted former Syrian President Bashar al-Assad in December to end his family's five-decade rule.

It has promised to help rebuild neighboring Syria and facilitate the return of millions of Syrian civil war refugees, and played a key role last month getting US and European sanctions on Syria lifted.

The newfound Turkish influence in Damascus has raised Israeli concerns and risked a standoff or worse in Syria between the regional powers.

In written answers to questions from Reuters, Guler said Türkiye and Israel, which carried out its latest airstrikes on southern Syria late on Tuesday, are continuing de-confliction talks to avoid military accidents in the country.

Türkiye’s overall priority in Syria is preserving its territorial integrity and unity, and ridding it of terrorism, he said, adding Ankara was supporting Damascus in these efforts.

"We have started providing military training and consultancy services, while taking steps to increase Syria's defense capacity," Guler said, without elaborating on those steps.

Named to the post by President Recep Tayyip Erdogan two years ago, Guler said it was too early to discuss possible withdrawal or relocation of the more than 20,000 Turkish troops in Syria.

Ankara controlled swathes of northern Syria and established dozens of bases there after several cross-border operations in recent years against Kurdish militants it deems terrorists.

This can "only be re-evaluated when Syria achieves peace and stability, when the threat of terrorism in the region is fully removed, when our border security is fully ensured, and when the honorable return of people who had to flee is done," he said.

NATO member Türkiye has accused Israel of undermining Syrian peace and rebuilding with its military operations there in recent months and, since late 2023, has also fiercely criticized Israel's assault on Gaza.

But the two regional powers have been quietly working to establish a de-confliction mechanism in Syria.

Guler described the talks as "technical level meetings to establish a de-confliction mechanism to prevent unwanted events" or direct conflict, as well as "a communication and coordination structure".

"Our efforts to form this line and make it fully operational continue. Yet it should not be forgotten that the de-confliction mechanism is not a normalization," he told Reuters.