Saudi Arabia and Qatar have announced plans to pay off the $15 million Damascus owes the World Bank
In a move that could facilitate Syria’s access to funds for rebuilding and paying public sector employees, Saudi Arabia and Qatar have pledged to settle Syria’s outstanding debt to the World Bank.
The Gulf states declared their intention to cover the approximately $15 million debt after discussions about Syria’s future following the World Bank and International Monetary Fund meetings in Washington last week.
This move indicates a Gulf-led effort to bolster Syria’s economic recovery under its new government. A shift in power occurred late last year when Hayat Tahrir-al-Sham (HTS) launched an unexpected offensive, seizing Damascus and removing former President Bashar Assad. HTS leader Ahmed al-Sharaa assumed the presidency and established a new transitional government in March.
“This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,” Saudi Arabia and Qatar stated jointly on Sunday.
The World Bank halted its Syrian operations at the start of the country’s civil war in 2011. Clearing the arrears will allow Syria to once again benefit from the bank’s financial aid and technical expertise, particularly as its economy remains shattered, with GDP nearly halved since 2010 and reconstruction costs estimated at $400 billion.
Both countries have been central to diplomatic engagement with Syria’s new interim government. While Saudi Arabia and its Gulf neighbors have increased humanitarian aid to Damascus recently, this debt settlement marks the first instance of Saudi financial support specifically directed toward the country.
Syria’s central bank governor and finance minister participated in the World Bank and IMF meetings in Washington this week, their first such appearance in over two decades.
U.S. sanctions, in effect since 2004 and targeting Assad’s supporters, continue to significantly impede Syria’s ability to secure necessary reconstruction aid.
According to Reuters, the U.S. presented Syria with a list of conditions last month for partial sanctions relief. These included the destruction of any remaining chemical weapon stockpiles and greater cooperation in combating terrorism.
Despite granting Assad asylum after his removal, Russia has maintained connections with Syria’s new leadership.
Russian President Vladimir Putin has expressed his country’s commitment to improving Syria’s social and economic conditions, including through humanitarian aid. The new Damascus government has also indicated its intention to maintain “strategic” relations with Moscow.
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