Damascus, Nov. 1 (SANA) – Minister of Finance Dr. Mohammad al-Hussein affirmed on Saturday that the effects of the current global financial crisis on Syria are limited, and that the government is working to reduce them.

In a speech at the Syrian Banking and Investment Conference, Dr. al-Hussein called for holding an international conference to reach a new international financial system that allows an active participation of economic forces and provides a batter representation for more developed and developing countries in decision-making.

The Minister pointed out that the current crisis is caused by the receding role of state in supervising and monitoring financial and banking systems and the nature of the world financial system.

He underlined the significant steps achieved in the Syrian financial sector during the past years, including the opening of private banks and the updating of monetary and banking decisions issued by the Central Bank of Syria.

Dr. al-Hussein noted the development in the insurance sector in Syria, adding that work is underway on establishing the stocks sector and that the Damascus Stock Market will be opened soon.

The Minister went on to say that Syria's foreign debts have decreased from USD 20 billion in 2000 to USD 5.3 billion at the end of 2007, with the ratio of overall foreign debt to GDP being below 13%. He added that next year's balance project includes a 14.2% increase from 2008, and that investment spending in government spending has increased 19.5%.

Regarding taxes, he pointed out that the income tax ceiling has been lowered from 63% to 28% for companies and individuals, while it was lowered for companies covered by the investment encouragement laws to 22%. In addition, the highest rate for customs was also lowered from 255% to 60%.

He added that tax income has increased from SP 170 billion in 2000 to SP 300 billion in 2004, with an annual increase of about 10%.

Dr. al-Hussein also underlined the modernization of customs laws and legislations and the developments in the investment sector after issuing of new legislations.

He concluded by affirming the development of the Syrian financial sector, which has increased participation in the GDP and achieved the highest development in any sector during the past few years, providing thousands of work opportunities and advanced financial, banking and insurance services, in addition to increasing financing channels for the private sector and the investors.

H. Sabbagh / Ghossoun