Iran's Initial Agreement for Another Billion-Dollar Aid to Syria

Continuing its support for Bashar al-Assad's government, the head of the Central Bank of Syria says that a preliminary agreement has been reached with Iranian officials to open a one billion dollar credit line for Damascus. Adib Mayaleh, the head of the Central Bank of Syria, stated in a phone interview with Bloomberg on Tuesday, April 15, that this will be Iran's second one billion dollar credit line to assist Syria's economy since 2013. Bloomberg reports that the Assad government still has reserves from the previous one billion dollar loan from Iran for use in importing goods into the country. In February 2013, the Export Development Bank of Iran announced on its website the allocation of a one billion dollar credit line to Syria. Iran, along with Russia, is one of the main supporters of Bashar al-Assad's government, which has been embroiled in bloody internal battles for the past four years. Mr. Mayaleh mentioned that Iranian delegations have recently traveled to Syria, and the Central Bank of Iran has also announced the preliminary agreement to open this new credit line. Bloomberg writes that Bashar al-Assad has managed to survive so far with financial and military assistance from Iran, and Hezbollah forces, who are pro-Iran, have also sent their troops to Syria to fight against Assad's opponents. The report also states that opponents of the Iran nuclear deal believe that this agreement will allow Iran to send more aid to Syria and expand its support for its allies. The comprehensive nuclear agreement is expected to be finalized by the deadline of June 30, and Iran is currently negotiating with six world powers regarding this agreement. It is said that one hundred billion dollars of Iranian assets are blocked abroad. On the other hand, there are banking, oil, and economic sanctions against Iran, which are expected to be lifted with the nuclear agreement. Bloomberg notes that the war has severely troubled Syria's economy and the national currency has collapsed. The Syrian pound has lost at least 50% of its value against the US dollar over the past four years. Bloomberg reports that in recent months, the decline in the value of the Syrian pound has accelerated. Last week, the Syrian pound was traded at 330 pounds to one dollar in the black market, but on Tuesday it improved slightly, trading at 280 pounds to one dollar. The head of the Central Bank of Syria says that the bank's reserves have not yet been depleted to intervene in the currency market; however, ten million dollars is being withdrawn daily by individuals or for importing goods. In June 2013, the state newspaper 'Tishrin' published a quote from Mr. Mayaleh stating that 'Tehran has opened two credit lines amounting to four billion dollars for Damascus and expects to open another credit line to counter the effects of international sanctions.' According to him, Iran continues to support Syria by opening a one billion dollar credit line to cover the costs of importing various items and another credit line worth three billion dollars to cover the costs of purchasing gasoline and related goods.