Syria's foreign debt cut to 10 percent of GDP after Russia deal

DAMASCUS, Jan 27 (AFP) - Syria's foreign debt has been cut to less than 10 percent of gross domestic product (GDP) following a deal struck by Damascus and Moscow, a senior economic official said in comments published Thursday.
"The foreign debt now represents less than 10 percent of GDP and close to eight percent of total exports," said the president of the state planning organisation, Abdullah Dardari, quoted in the official daily Ath-Thawra.
During a visit to Moscow this week by Syrian President Bashar al-Assad, Russia agreed to write off more than 70 percent of the 13 billion dollars of Syrian debt, mainly incurred from arms purchases during the Soviet era.
Dardari said his country also wanted to settle its debts to Bulgaria and Romania as part of efforts "to turn a new page in economic and commercial relations with Eastern Europe".
In November, the official noted, Syria signed protocols with Slovakia and the Czech Republic to settle the country's debts to the former Czechoslovakia.

01/27/2005 16:01 GMT - AFP