Debt Increases as Economy Struggles

Syrian traders and industrialists are allowing customers to pay in instalments because of the stagnating economy, the pro-government magazine Money reported on October 23.



Merchants and industrialists previously insisted that customers pay up front, but are now making credit arrangements available.



As market-based principles have been introduced as part of the transition from socialism to a “social market” economy, imported goods have flooded the market, Money reported. Yet incomes are not keeping up with inflation, forcing many importers to allow customers to pay in instalments.



Many merchants are now in financial trouble because of credit they have offered, according to the magazine.



Abo al-Huda al-Laham, a board member of the Damascus chamber of commerce, told the magazine that rising prices and taxes have reduced consumers’ purchasing power. In addition to consumer debt, three out of ten retailers are unable to repay loans they have taken out, he reported.