Panorama of week.. policies of Damascus government deepen suffering of Syrians

 During the past week, the Arab newspapers dealt with the Damascus government's handling of the earthquake's consequences.

 “Earthquake loans” are unable to support the afflicted in Syria

Beginning with the Syrian issue, Al-Sharq Al-Awsat newspaper said: “A Syrian banking expert warned that the policies of the Central Bank of Syria related to loans, would push towards more inflation, and the expert and consultant in banking affairs, Amer Shahda, said, in a statement to the local media, that the Central Bank’s decision to allow granting loans, while buying remittances in foreign currency and reducing a cash block from the Syrian currency, it seems as if he is seeking to raise the rate of inflation.”

The expert pointed out that even today, this policy of the Central Bank seems “unclear to society and inconsistent with the requirements of the economic situation, as evidenced by the rise in prices from the date of the earthquake to the present time,” according to local newspaper Al-Watan, which is close to the regime.  Shahda explained that in order for the Central Bank to offer a cash block in the market with the purchase of remittances, it is supposed to “use a tool in order to absorb the excess offering from the cash block in order to avoid inflation and price increases.”

 The Syrian market witnessed a frightening wave of price hikes, following the earthquake, by between 30 percent and 50 percent in various types of foodstuffs, from bread to meat, formulas, vegetables and fruits, with many materials disappearing due to the concentration of aid flows to the stricken areas.  Contrary to expectations of an improvement in the value of the lira, with the influx of foreign aid and remittances, the exchange rate increased from 7,000 pounds to the US dollar to 7,400 pounds.  This exacerbated the suffering of the Syrians.

The government in Damascus had offered loans to restore homes damaged by the earthquake, at a value of 18 million pounds ($2,500) over a period of 6 years, to be paid in monthly installments of 250,000 pounds every month, while the beneficiary’s income does not exceed the value of the monthly payment.  The dilemma is that whoever actually needs the loan cannot get it.  The economist described these loans as "incapable of performing their duties" and does not suit the citizen's living conditions and the current high prices.  He explained that the value of the loan, whose ceiling is set at 18 million pounds, and compared to the income of the afflicted, shows the inability to pay it.  Also, the personal loans, which are one and a half million pounds, are not enough for food, so how can they be used for restoration?  A witness confirmed that these loans are “useless and will only constitute more negative repercussions on the economy, including the high rate of inflation in the market as a result of offering a large monetary block.”

Shahda criticized the government's policies in dealing with the repercussions of the earthquake disaster, saying: "Today we are still in the stage of responding to the disaster, and we have not yet moved to the stage of finding solutions and developing plans to get out of it, and this is evidence of the absence of responsible thought in developing solutions."  He called on the government to give correct and final figures and results for the size of the damage and losses, in order to build policies and proposals for future solutions, as it is not possible to “devise solutions in the absence of data,” pointing to his many attempts to obtain the current population of Syria.

A

ANHA