The rate of the Syrian pound to the Euro, the new European currency, will be fixed according to the rate of the pound to the US dollar.

On January 1, 2002, the Euro, the common currency of the 12 members of the European Economic and Monetary Union (EMU) will begin circulating.

The Syrian parliament voted yesterday, the new law reforming the financial sector of the country, said SANA, the state news agency.

Syria's parliament on Thursday passed a 2002 budget projecting expenditure of SYP356 billion (US$7.66 billion), a 10 percent increase on the previous year's spending, reported the Syrian Arab News Agency (SANA).

The Finance Committee of the Syrian Parliament has started discussions on the new law governing the Central Bank, said Al Sharq al Awsat.

According to Al Hayat, the Syrian authorities froze tens of millions of dollars of assets held by Iraqi state organisms.

Syria will have a large share of the EUR6.4 billion allocated by the European Investment Bank (EIB) to the Mediterranean countries in the six coming years, reported Al Hayat.

Investors from the Gulf have expressed their interest in setting up an Islamic bank in Syria following the passing of a law allowing private capital to invest in the banking sector, reported Al Hayat.

On October 13 Syria became the latest member of the World Bank's Multilateral Investment Guarantee Agency (MIGA), the official SANA news agency reported.

The daily Teshreen reported that a total of 102 applications were filed with the Ministry of Economy for the set up of private banks.