AMF approves loan for Syria and Lebanon

The board of the Arab Monetary Fund (AMF) yesterday agreed to approve loans to Lebanon and Syria.

The meeting in Abu Dhabi also approved the June 2008 agreement to restructure Iraq's debts, opening the door for the country to rejoin the fund.

"The AMF will sign a loan agreement to facilitate the structural correction of Syria's financial and banking sector within the next few days," said Dr Jassim Al Mannai, Director General and Chairman.

"The board also approved a loan to Lebanon to support a complementary reform programme in the government's financial sector. An agreement is due to be signed with the Lebanese Government during the next few days," Al Mannai said.

The AMF sent representatives to discuss the programme with the authorities in Beirut.

The delegation established that Lebanon had applied most of the reforms required under the programme's framework despite the difficult conditions in the country over the past two years.

Al Mannai presented a report that reviewed the AMF's activities since the last meeting in September.

He revealed that the fund's overseas investments achieved total returns of 5.5 per cent during the third quarter this year.

And he said the deposits in the AMF by Arab central banks and financial institutions had increased.

Al Mannai also presented a memorandum on measures to be taken by the AMF regarding alternative investment funds in light of the international financial crisis.

Another memorandum revised the AMF's list of approved banks for 2009.