NICOSIA Germany and Syria have worked out a deal on settling Syrian debts to the Germans estimated at more than three billion marks, an authoritative Arab newspaper reported Saturday.
The newspaper Al-Hayat, in a report from Brussels quoting unidentified European officials, asserted that the deal essentially provided for repayment of only one billion marks over 20 years, after a five-year grace period, AFP reported.
The report said German Chancellor Gerhard Schroeder would sign the agreement formally when he visits Damascus on October 31 as part of a scheduled Middle East tour.
Al-Hayat quoted European officials as saying the deal would pave the way for the European Investment Bank to finance major projects in Syria, valued at more than 570 million euros, and for expanding economic ties between Syria and the European Union.
The report said the total debt included around 2.5 billion marks owed to the former East Germany and the equivalent of $346 million owed to former West Germany. The East Germans were one of Syria's main arms suppliers during the Soviet era.
The reported deal appears similar to a number of agreements negotiated by Syria since 1996, when French President Jacques Chirac visited Damascus and wrote off half the 1.8-billion-franc debt owed by the Syrians to his country, the report said.
Iran similarly agreed last year to write off $466 million in overdue interest payments and settle for getting back $502 million from the Syrians, according to the report.
(DPA)