The Bank of Syria executes the first documentary credit with an American bank in 14 years

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The Central Bank of Syria announced the implementation of the first documentary credit in favor of the Syrian Petroleum Company in coordination with one of the major American banks, with the aim of supplying oil products from one of the major international companies, in a step that is the first of its kind in 14 years.

The Bank of Syria said, in a statement: “In a development that reflects the expansion of the scope of commercial transactions supported by official banking channels, the first deal to supply petroleum products was concluded today between the Syrian Petroleum Company and Saudi Aramco, opening a new path to securing oil supplies to Syria through direct commercial and banking arrangements.”

The bank added: “In a pivotal step to translate the agreement into an implementation path, the Central Bank of Syria today executed the first documentary credit, 14 years after the last credit issued, for the benefit of the Syrian Petroleum Company in coordination with one of the major American banks, thus securing the necessary banking instrument to implement the deal, and establishing a financing and settlement mechanism for trade related to the supply of petroleum products,” according to the Syrian news agency, SANA.

The bank explained that this development gains importance beyond the deal itself, as it reflects its role in creating the necessary banking channels to finance strategic trade, and coordinating documentary procedures with the parties concerned, in a way that supports the regularity of oil supplies and enhances the reliability of implementing commercial operations through the official banking system.

He stressed that he is working in coordination with the Syrian Petroleum Company to develop the necessary financial and documentary arrangements to facilitate the implementation of supply operations, in a way that supports the continuity of supplies and meets the needs of the local market, and enhances the ability of national institutions to manage their strategic purchases through organized and reliable banking channels.