News / Middle East

Syrian Official: UBAF Bank Unlocking Frozen Funds for Food

A woman holds bread in Minbij city in the east countryside of Aleppo, Syria, Oct. 18, 2013.
A woman holds bread in Minbij city in the east countryside of Aleppo, Syria, Oct. 18, 2013.
Reuters
Syrian bank accounts frozen abroad are gradually being freed up for use to fund food purchases, the head of Syria's General Foreign Trade Organization (GFTO) told Reuters on Sunday, with France being the most committed to releasing the money.

The European Union, United States and other Western countries have imposed sanctions on President Bashar al-Assad's government over his crackdown on the revolt in his country, but these do not apply to food.

The Paris-based Union De Banques Arabes Francaises (UBAF) has approved the release of funds for purchases, Tarek al Taweel, Director General of GFTO, said over the telephone.

“UBAF bank in France has been very cooperative,” Taweel said.

France in September cleared the use of frozen Syrian bank assets to fund the export of food to the country as part of a European Union system that allows such funds to be used for humanitarian ends.

UBAF was not immediately available for comment when contacted through phone and e-mail.

Syria's GFTO has been trying in vain for several months to buy sugar and rice in international tenders using funds frozen abroad. One of the reasons cited by traders was a failure to secure permission from governments to free the funds.

“The problem is not with us, the problem is that the traders have to seek the approval for unlocking the assets,” Taweel said.

GFTO is seeking 135,000 tons of long or short grain white rice and 276,000 tons of white sugar in two separate tenders. The deadline for sugar offers is Nov. 27, while that for rice is Nov. 26.

GFTO has asked for the same amounts of sugar and rice with the same conditions four times, and Taweel said he expected to face the same issues that hampered previous tenders when the new bids are reviewed at the end of the month.

“We have to ask that the traders have the approval to unlock funds alongside their offer, otherwise we cannot do business,” he said.

“This is what is hindering the process and the problem still exists.”

Apart from requiring prior approval to unlock frozen assets, traders have also said the low number of offers was due to tender conditions that do not reflect the risk involved in doing business with a country embroiled in civil war.

The requirement to place a one million euro ($1.4 million) bid bond was listed as one of the tender terms keeping traders away.

A bid bond is a form of guarantee which tender participants must give to ensure they will deliver under the terms of their offer.

Taweel said the one million euro bid bond condition would remain as long as some traders continued to make offers based on it.

“We might consider changing that term if it becomes an issue but so far traders have been willing to offer under these conditions,” he said.

Despite difficulties in buying food through government tenders, some deals struck through middlemen outside of the tender process have secured food for the country.

The Syrian state grain agency Hoboob said in October it concluded a deal to import 500,000 tons of wheat of which around 150,000 tons had arrived in Syria. That purchase was done outside the tender process through a local Syrian firm.

You May Like

Multimedia Obama, Modi Announce Breakthrough on Nuclear Deal

Deal resolves differences over liability of suppliers to India in event of a nuclear accident, U.S. demands on tracking whereabouts of material supplied to country More

WHO's Late Efforts in Tackling Ebola Highlight Need for Reform

Health experts debate measures to reform agency’s response to global public health emergencies in special one-day session on deadly outbreak More

One Tumultuous Year in Power for CAR's President

As sectarian violence raged across Central African Republic, interim President Catherine Samba-Panza has Herculean task: to end civil war and put country back on right track More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid