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Syria gives banks six months to absorb losses from Lebanese crisis

Syria gives banks six months to absorb losses from Lebanese crisis
Bundles of Syrian currency notes are stacked up as an employee counts money at Syrian central bank, after the ousting of Syria's Bashar al Assad in Damascus, Syria. (Reuters)
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Updated 36 sec ago

Syria gives banks six months to absorb losses from Lebanese crisis

Syria gives banks six months to absorb losses from Lebanese crisis
  • Syrian officials say the decision is part of a wider effort to clean up a banking sector crushed by 14 years of war and Western sanctions and help address a liquidity crisis that has stifled economic activity

DAMASCUS: Syria’s central bank has ordered commercial lenders to fully provision for losses tied to Lebanon’s financial collapse and submit credible restructuring plans within six months, a move that could reshape the country’s battered banking sector.
The directive issued on September 22 requires banks to recognize 100 percent of their exposure to Lebanon’s financial system, where Syrian lenders parked funds during the country’s civil war.
Syrian officials say the decision is part of a wider effort to clean up a banking sector crushed by 14 years of war and Western sanctions and help address a liquidity crisis that has stifled economic activity.
The order has prompted some banks to seek new investors or explore foreign acquisitions, three Syrian bankers told Reuters.
“They will need to provide us with a credible plan for restructuring, and now the countdown has started,” Syrian Central Bank governor Abdelkader Husriyeh told Reuters.
“They can find various ways to do this, including via their sister banks in Lebanon or by partnering with other international institutions,” he said.

SYRIAN BANKS FACE SIGNIFICANT EXPOSURE
Syrian commercial banks have more than $1.6 billion in exposure to Lebanon, Husriyeh said.
That represents a significant proportion of the $4.9 billion in total deposits in the Syrian commercial banking sector, according to a Reuters calculation based on the 2024 financial reports of all 14 commercial banks in Syria, published by the Damascus Stock Exchange.
The banks most affected include Bank Al-Sharq, Fransabank, Bank of Syria and Overseas, and Banque Bemo Saudi Faransi, Shahba Bank and Ahli Trust Bank, all originally Lebanese banks that opened branches in Syria in the 2000s. None of the banks immediately responded to requests for comment.
Bankers say they turned to Lebanon during Syria’s civil war, with few other options due to Western sanctions that have gradually been rolled back since former leader Bashar Assad was ousted last year.
But those deposits were trapped when Lebanon’s banking system imploded in 2019, following years of fiscal mismanagement and political paralysis.
Lebanon has yet to adopt a plan to resolve the crisis, although Lebanese officials say they have made significant progress toward a “financial gap law” to determine how to prioritize compensating people for their losses.

BANKS CHALLENGE SHORT DEADLINE
Some Syrian bankers have criticized the short timeline to comply with the directive to fully provision for losses related to Lebanon.
“The decision in and of itself is justified, but the time given isn’t,” one banker said. “It’s preemptive, premature — pre-whatever you want. Political.”
Syrian officials deny any political motives.
Husriyeh said the move was part of a broader effort to adhere to regulations neglected by the previous government.
“We don’t want any bank to face issues, but denial is also not a solution,” he said. “We are moving from the denial of the old regime to acknowledgement and treatment of the problem.”
Some of the affected banks are in the early stages of talks with Arab financial institutions, including banks based in Jordan, ֱ and Qatar, over possible acquisitions, three Syrian bankers said.
Husriyeh said the government aims to double the number of commercial banks operating in Syria by 2030 and said some foreign banks were already in the process of getting licensed. He declined to provide details, citing the confidentiality of the process.


US Vice President JD Vance to visit Israel with Gaza ceasefire uncertain

US Vice President JD Vance to visit Israel with Gaza ceasefire uncertain
Updated 2 sec ago

US Vice President JD Vance to visit Israel with Gaza ceasefire uncertain

US Vice President JD Vance to visit Israel with Gaza ceasefire uncertain
  • Gaza ceasefire remains shaky
  • Hamas and mediators talking in Cairo
JERUSALEM/CAIRO: US Vice President JD Vance will arrive in Israel on Tuesday, as Washington tries to stabilize the first, shaky, phase of the Gaza ceasefire and push Israel and Hamas toward the harder concessions asked of each side in coming talks.
The two sides have accused each other of repeated breaches of the ceasefire since it was formally agreed eight days ago, with flashes of violence and recriminations over the pace of returning hostage bodies, bringing in aid and opening borders.
However, US President Donald Trump’s 20-point ceasefire plan will require much more difficult steps to which the sides have yet to fully commit, including the disarmament of Hamas and steps toward a Palestinian state.
Vance’s visit follows that of Witkoff
Vance’s visit follows Monday’s talks between Israeli Prime Minister Benjamin Netanyahu and US envoys Steven Witkoff and Trump’s son-in-law Jared Kushner and comes as Hamas meet mediators in Cairo.
Netanyahu said on Monday he would be discussing regional challenges and opportunities with Vance.
Israel’s war in Gaza and related conflicts with Iran, Lebanese Hezbollah and Yemen’s Houthis have left it militarily dominant in the Middle East but with increasingly frosty relations with Arab states.
Hamas’ Cairo talks, led by the group’s exiled leader Khalil Al-Hayya, are looking at prospects for the next phase of the truce and post-war arrangements in Gaza as well as stabilizing the existing ceasefire.
Trump’s plan called for the establishment of a technocratic Palestinian committee overseen by an international board with Hamas taking no role in governance.
A Palestinian official close to the talks said Hamas encouraged the formation of such a committee to run Gaza without any of its representatives, but with the consent of the group as well as the Palestinian Authority and other factions.
Last week senior Hamas official Mohammed Nazzal told Reuters the group expected to maintain a security role on the ground in Gaza during an undefined interim period.
Israel has said Hamas can have no role at all in Gaza, while it and Trump have said the group must disarm. Nazzal would not commit to the group disarming.
Hamas last week battled rival gangs on the streets in Gaza and publicly executed men it accused of having collaborated with Israel. Trump condoned the killings but the US military’s Middle East command urged Hamas to stop violence “without delay.”
Vance was expected on Tuesday to visit the headquarters of joint forces led by the US military and meant to help with Gaza stabilization efforts.
Return of hostage bodies and aid deliveries
Speaking to Egyptian television late on Monday, Hayya reaffirmed the group’s compliance with the truce and said it would fulfil its obligations in the first phase, including returning more bodies of hostages.
“Let their (hostages) bodies return to their families, and let the bodies of our martyrs return to their families to be buried in dignity,” he said.
One more body of a hostage seized by Hamas in its Oct. 7, 2023, attack that triggered the war was returned on Monday and identified by Israeli authorities. Some 15 bodies are believed to remain in Gaza, with Israel expecting about five of them to be returned soon and others requiring a slower, more complex, process of retrieval.
Inside Gaza on Tuesday, more aid was flowing into the enclave through two Israeli-controlled crossings, Palestinian and UN officials said.
However, with Gaza residents facing catastrophic conditions aid agencies have said far more needs to be brought in.
Ismail Al-Thawabta, director of the Hamas-run Gaza government’s media office said far fewer trucks had entered than had been agreed upon and called it “a drop in the ocean of what people need.”
Violence in Gaza since the truce has mostly focused around the “yellow line” demarcating Israel’s military pullback. On Tuesday Israel’s public Kan radio reported troops had killed a person crossing the line and advancing toward them.
Palestinians near the line, running across devastated areas close to major cities, have said it is not clearly marked and hard to know where the exclusion zone begins. Israeli bulldozers began placing yellow concrete blocks along the route on Monday.
Qatar, one of the mediators of the ceasefire, on Tuesday accused Israel of “continuous violations” of the truce.

Iranian detainee in France set for prisoner swap, Tasnim reports

Iranian detainee in France set for prisoner swap, Tasnim reports
Updated 20 min 30 sec ago

Iranian detainee in France set for prisoner swap, Tasnim reports

Iranian detainee in France set for prisoner swap, Tasnim reports
  • Mahdieh Esfandiari, an Iranian student living in the French city of Lyon, was arrested this year over anti-Israel social media posts

An Iranian student detained in France has been readied for a prisoner swap, an Iranian diplomat told semi-official Tasnim news agency on Tuesday, a day after Iran said there was necessary will to exchange prisoners with France.
“The foreign minister announced that Mrs. Esfandyari was placed in the exchange channel and we have put together a political and consular package that both countries must implement,” the deputy for Consular Affairs at Iran’s foreign ministry said.
Cecile Kohler and her partner Jacques Paris, both French citizens, have been detained in Iran since 2022.
Iran has accused France of arbitrarily detaining Mahdieh Esfandiari, an Iranian student living in the French city of Lyon who was arrested this year over anti-Israel social media posts.


Emir of Qatar condemns ‘continued violation’ of Gaza ceasefire

Emir of Qatar condemns ‘continued violation’ of Gaza ceasefire
Updated 40 min 55 sec ago

Emir of Qatar condemns ‘continued violation’ of Gaza ceasefire

Emir of Qatar condemns ‘continued violation’ of Gaza ceasefire
  • ‘We reiterate our condemnation of all Israeli violations and practices in Palestine’
  • ‘… particularly the transformation of the Gaza Strip an area unfit for human life’

DOHA: The ruler of Qatar, a key mediator for the ongoing Gaza truce, accused Israel of violating the 11-day-old ceasefire on Tuesday after a series of deadly strikes on Hamas positions.
“We reiterate our condemnation of all Israeli violations and practices in Palestine, particularly the transformation of the Gaza Strip an area unfit for human life (and) the continued violation of the ceasefire,” Emir Sheikh Tamim bin Hamad Al-Thani said in an annual address to the Shoura Council legislative body.


Drone attack hits Khartoum airport area ahead of reopening: eyewitnesses

Drone attack hits Khartoum airport area ahead of reopening: eyewitnesses
Updated 21 October 2025

Drone attack hits Khartoum airport area ahead of reopening: eyewitnesses

Drone attack hits Khartoum airport area ahead of reopening: eyewitnesses
  • Eyewitnesses told AFP that they heard the sounds of drones over central and southern Khartoum and multiple explosions in the airport area between 4:00 and 6:00 am
  • The airport has been shut since fighting erupted in April 2023 between the Sudanese army and the paramilitary Rapid Support Forces (RSF), leaving vital infrastructure across the capital heavily damaged

KHARTOUM: A drone attack struck the vicinity of Khartoum International Airport early Tuesday, one day before Sudanese authorities were due to reopen the facility for domestic flights for the first time in over two years.
Eyewitnesses told AFP that they heard the sounds of drones over central and southern Khartoum and multiple explosions in the airport area between 4:00 and 6:00 am (0200-0400 GMT).
The airport has been shut since fighting erupted in April 2023 between the Sudanese army and the paramilitary Rapid Support Forces (RSF), leaving vital infrastructure across the capital heavily damaged.
On Monday, Sudan’s Civil Aviation Authority had said the airport would reopen as planned on Wednesday, with domestic flights resuming gradually after technical and operational preparations were completed.
While Khartoum has remained relatively calm since the army reclaimed control earlier this year, drone attacks have continued, with the RSF repeatedly accused of targeting military and civilian infrastructure from afar.
One eyewitness also told AFP that drones hit northern Omdurman early Tuesday, an area known to host some of Sudan’s largest military installations.
There was no immediate claim of responsibility for the strikes and no information on casualties or damage was released.
Tuesday’s strike marks the third drone attack on the capital in a week. Last week, drones targeted two army bases in northwest Khartoum over two consecutive days, though a military official said most of the drones were intercepted.
Following the army’s counteroffensive and recapture of Khartoum, more than 800,000 people have returned to the capital.
The army-aligned government has since launched a wide-ranging reconstruction campaign and is moving officials back from Port Sudan, where they had operated during the conflict.
Large parts of Khartoum, however, remain in ruins, with millions still experiencing frequent blackouts linked to RSF drone activity.
The most intense violence is now concentrated in the west, where RSF forces have surrounded El-Fasher, the last major city in Darfur not under their control. The paramilitary has tried to seize the city for over 18 months, making it the most strategically critical front of the war.
If captured, the RSF would control all of Darfur and much of Sudan’s south, while the army maintains dominance over the center, east and north.
The wider war in Sudan has killed tens of thousands, displaced nearly 12 million and created the world’s largest displacement and hunger crises.


Israel still fires on Lebanon almost a year after a ceasefire. Some predict the same for Gaza

Israel still fires on Lebanon almost a year after a ceasefire. Some predict the same for Gaza
Updated 37 min 12 sec ago

Israel still fires on Lebanon almost a year after a ceasefire. Some predict the same for Gaza

Israel still fires on Lebanon almost a year after a ceasefire. Some predict the same for Gaza
  • Lebanon’s health ministry has reported more than 270 people killed and around 850 wounded by Israeli military actions since the ceasefire
  • Israel says it aims to stop the badly weakened Hezbollah from rebuilding

BEIRUT: As a tenuous ceasefire took hold in Gaza this month, Israel launched more airstrikes on southern Lebanon — 11 months into a ceasefire there.
The bombardment of a construction equipment business killed a Syrian passerby, wounded seven people including two women, and destroyed millions of dollars worth of bulldozers and excavators.
The Oct. 11 strikes would be an anomaly in most countries not at war. But near-daily Israeli attacks have become the new normal in Lebanon, nearly a year after a US-brokered truce halted the latest conflict between Israel and Hezbollah.
Some see a likely blueprint for the Gaza ceasefire, with ongoing but lower-intensity conflicts. On Sunday, Israel struck Gaza after it said Hamas fired at its troops, in the first major test of the US-brokered truce.
Mona Yacoubian, director of the Middle East program at the Center for Strategic and International Studies think tank, described the Lebanon scenario as a “lessfire” rather than a ceasefire.
Lebanon “could well serve as the model for Gaza, essentially giving leeway to Israeli forces to strike whenever they deem a threat without a full resumption of conflict,” she said.
A ceasefire with no clear enforcement
The latest Israel-Hezbollah conflict began the day after the Oct. 7, 2023, Hamas-led attack on Israel triggered the war in Gaza. The militant group Hezbollah, largely based in southern Lebanon, began firing rockets into Israel in support of Hamas and the Palestinians.
Israel responded with airstrikes and shelling. The low-level conflict escalated into full-scale war in September 2024.
The ceasefire on Nov. 27, 2024, required Lebanon to stop armed groups from attacking Israel and Israel to halt “offensive” military actions in Lebanon. It said Israel and Lebanon can act in “self-defense,” without elaborating.
Both sides can report alleged violations to a monitoring committee of the US, France, Israel, Lebanon and the UN peacekeeping force known as UNIFIL, but the deal is vague on enforcement.
In practice, Israel has largely taken enforcement into its own hands, asserting that its strikes in Lebanon target Hezbollah militants, facilities and weapons.
Israel says it aims to stop the badly weakened group from rebuilding. Lebanese officials say the attacks obstruct its efforts to get Hezbollah to disarm by giving the group a pretext to hold onto its weapons.
Lebanon also says Israel’s strikes, including the Oct. 11 one, often harm civilians and destroy infrastructure unrelated to Hezbollah.
Lebanon’s health ministry has reported more than 270 people killed and around 850 wounded by Israeli military actions since the ceasefire. As of Oct. 9, the UN human rights office had verified that 107 of those killed were civilians or noncombatants, said spokesperson Thameen Al-Kheetan.
No Israelis have been killed by fire from Lebanon since the ceasefire.
From Nov. 27, 2024, to mid-October, UNIFIL detected around 950 projectiles fired from Israel into Lebanon and 100 Israeli airstrikes, spokesperson Kandice Ardiel said. During the same period, it reported 21 projectiles fired from Lebanon toward Israel. Hezbollah has claimed one attack since the ceasefire.
Conflicting narratives
After the Oct. 11 strikes in Msayleh, Israel’s army said it hit “engineering equipment intended for the reconstruction of terrorist infrastructure in southern Lebanon.”
Lebanese authorities, Hezbollah and the equipment’s owner disputed that.
“Everyone in Lebanon, from all different sects, comes to buy from us,” owner Ahmad Tabaja told journalists. “What have we done wrong?”
Lebanese President Joseph Aoun called the strikes “blatant aggression against civilian facilities.” Parliament Speaker Nabih Berri accused Israel of seeking to prevent communities’ reconstruction. Lebanon complained to the UN Security Council.
A few days later, Israel struck a cement factory and a quarry, claiming Hezbollah planned to use it to rebuild its infrastructure.
Last month, an Israeli strike hit a motorcycle and a car carrying a family in Bint Jbeil. It killed Shadi Charara, a car salesman, three of his children — including 18-month-old twins — and the motorcyclist, and badly wounded Charara’s wife and oldest daughter. It was among the highest death tolls since the ceasefire, sparking particular outrage because of the children.
“My brother was a civilian and his children and wife are civilians, and they have nothing to do with politics,” said sister Amina Charara.
Israel’s military said it was targeting a Hezbollah militant, whom it did not name, but acknowledged that civilians were killed.
Even when the target is a known Hezbollah member, the military necessity can be disputed.
Earlier this month, an Israeli drone strike killed a Hezbollah member who was blinded last year in Israel’s exploding pagers attack, along with his wife. Israel’s army said Hassan Atwi was a key official in Hezbollah’s Aerial Defense Unit. Hezbollah officials said he had played no military role since losing his eyesight.
The end of ‘mutual deterrence’
Hezbollah was formed in 1982, with Iranian backing, to fight Israel’s occupation of southern Lebanon at the time. Israeli forces withdrew in 2000, and Hezbollah grew into one of the region’s most powerful non-state armed groups.
In 2006, Hezbollah and Israel fought a month-long war that ended in a draw. For the next 17 years, “there was a tense calm ... that was largely due to mutual deterrence,” said Nicholas Blanford, a senior fellow with the Atlantic Council’s Middle East program.
Strikes in Lebanon were generally understood to be off limits. Both sides wanted to avoid another damaging war. Now that equation has changed.
Though Blanford said Hezbollah could still deliver blows to Israel, the group’s “deterrence has been shattered by the recent war,” he said.
In an interview with The Associated Press last month, Hezbollah political official Mohammad Fneish said the prospect of coexisting with daily Israeli attacks is “not acceptable.”
But the group has largely limited itself to calling on Lebanon’s government to pressure Israel with what Fneish called “its political, diplomatic or other capabilities.”
He added: “If things develop further, then the resistance leadership is studying matters, and all options are open.”
Yacoubian, the analyst, said she didn’t see the situation in Lebanon changing any time soon, “barring a breakthrough in behind-the-scenes negotiations brokered by the US”
With the Gaza ceasefire, she said, the difference could be the “significant role” of fellow mediators Qatar, Egypt and Turkiye.