A privately owned Iraqi bank has set up shop in Damascus because it wants to participate in the opening up of trade flows between Syria and Iraq.

Al Basra Private Bank for Investment says the letters of credit (L/Cs) it will make available will assist this process and meet demand from Syrian businesses for locally available documentary credits.

Lebanese fall out

Earlier this yearDamascus introduced several banking sector reforms to make trade finance services more available for Syrian businesses, many of which have traditionally used banks in Lebanon for trade finance services.

In one reform, Syria's Money and Credit Council said it would allow banks to offer importers L/Cs in foreign currency against collaterals to be decided by them. (DC World News, 25 March 2005)

Opening markets

Al Basra will open its first branch in the Damascus Free Zone (DFZ). Director of the new branch, Dr Qais Saleh Al Badri, says the bank chose that location because of its proximity to businesses involved in developing economic and commercial exchanges between Arab countries.

Al Badri added that this type of business would most likely require products such as the bank's guarantees and documentary credit services.

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