Syria to issue bonds and Teasury bills for the first time

Reuters, Thursday 9 Dec 2010

Syria will finance public projects by issuing bonds and Treasury bills at $43.5m

Syrian government to boost energy supply. (Photo: AP)

The Syrian government will issue bonds and treasury bills to finance infrastructure projects. The sale is considered a first for Syrian government which in the past had financed such projects by borrowing from the Central Bank.

Next Monday, the state will hold an auction, offering three and six months’ treasury bills for a total of $43.5 million, Minister of Finance Mohammed al-Hussein told the Syrian news agency.

Later, the government will also issue three- and five-year maturity bonds. These sales will be used mainly to finance projects to generate electricity, a sector which is suffering from severe shortages in Syria, the minister explained, adding that the funds will be used to finance productive investments and not for increasing liquidity and profitability of the banks that subscribe.

Three years ago, the central bank of Syria announced plans to issue three-year treasury bills in a trial auction for local banks.

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