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Bank deleveraging has barely started

Bank deleveraging has barely started

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Abigail Hofman:

Abigail Hofman:

I wonder if ______ is an extremely optimistic person or in a cocoon of senior management denial

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July 2001

Investing in infrastructure needs to get better





Sporadically, the lights go out in Damascus, although power cuts tend to be short-lived and much less frequent than they used to be, say local businessmen. Nevertheless, Syria clearly needs to channel funds into its power sector. Today, it has installed generating capacity of some 3,600MW, and will need to add an estimated 2,200MW by 2006, representing an annual increase in demand of 6%, which calls for an investment of just over $1.6 billion.
So far, funding for the sector has come from the European Investment Bank, with loans of e75 million and e115 million advanced in December 2000 and February 2001 respectively earmarked for upgrading the electricity distribution system. Funding for energy-related infrastructural developments has also come from such sources as the Abu Dhabi Development Fund, the Kuwait-based Arab Fund for Economic and Social Development and the Islamic Development Bank in Jeddah.
Local businessmen say that the national road network in Syria is of a high standard compared with other countries in the Arab world - it needs to be, says one, in order to ensure speedy military movements - although several recent projects are aimed at improving the network still further. For example, a Kuwaiti firm recently won a $206.5 million contract to construct the new 100 kilometre four-lane highway between the important port city of Latakia and Ariha in the north of Syria. Funding is being provided by the Kuwait Fund for Arab Economic Development and the Kuwait-based Arab Fund for Economic and Social Development.
Syria's telecommunications infrastructure has improved beyond recognition in the past two years, local economists say. Nowadays, most Damascus businessmen would not be seen dead without a mobile telephone, with two new GSM networks having recently been launched by Investcom of Lebanon - using equipment supplied by Ericsson - and Syriatel, which is a subsidiary of Egypt's Orascom - using Siemens equipment. The use of mobile telephones is becoming much more widespread following a recent cut in the connection fees for new networks from $1,200 to $400 and a simultaneous reduction in call tariffs. As of April 2001, there were some 60,000 mobile subscribers in Syria, with the total expected to reach 75,000 by the year-end.






Dear Sirs, In view of what seems to be happening internationally with banks at the moment, I was wondering if you could advise me. If one of my cheques is returned marked ‘insufficient funds,’ how do I know whether that refers to you or to me?

A letter by a customer to a bank seen by Euromoney. One can’t help feeling that the balance of power in the relationship has changed somewhat

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