Saudi Arabia and Qatar to repay Syria’s debts to World Bank
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Saudi Arabia and Qatar’s $15 million payment to Syria's World Bank debt will unlock reconstruction funding and resume World Bank support after 14 years, marking a significant step in rebuilding the war-torn country.
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In this file picture taken from the balcony of the Abdul-Hamid Khatib home, people walk through mounds of rubble which used to be high-rise apartment buildings, Aleppo, Syria, on January 20, 2017. (AP/Hassan Ammar)
Saudi Arabia and Qatar will pay Syria’s $15 million debt to the World Bank, unlocking access to reconstruction and public-sector funding. It marks the first Saudi financial aid to Syria since the fall of Bashar al-Assad’s regime, which Riyadh had opposed. Syria’s economy remains devastated by years of war and sanctions, posing major challenges for the new rebel-led government.
“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,” the two countries said in a joint statement on Sunday during the spring meetings in Washington of the World Bank and IMF.
Syria currently owes around $15 million in arrears to the World Bank, a sum that must be cleared before the institution can authorize new aid or grants. Previous attempts to settle the debt using frozen overseas assets failed, according to two sources cited by Reuters earlier this month.
Saudi Arabia and its Gulf neighbors have increased humanitarian aid to Syria, with the debt settlement marking the first Saudi financial support as Riyadh seeks to expand its influence, highlighted by welcoming Syria's new leader on his first foreign trip in February, according to FT. Finance Minister Mohammed al-Jadaan emphasized the need for caution due to sanctions but called for greater international support for war-torn countries like Yemen, Sudan, Lebanon, and the Palestinian territories.
“They need to know that the international community...will stand by them,” he said.
Syria's central bank governor and finance minister attended World Bank and IMF meetings in Washington for the first time in over 20 years, marking the new government's first visit to the US since the Assad regime's fall in December. To rebuild diplomatic relations and gain international financial support, Syrian officials were encouraged by the IMF and World Bank to provide trustworthy economic data and revive the central bank.
More than a decade of strain
The UN estimated in 2017 that Syria's rebuilding would cost at least $250 billion, with some experts now placing the estimate at $400 billion. A joint Saudi-Qatari statement said settling Syria's loans will restart World Bank support, enabling future funding for vital sectors after 14 years of suspension.
Last month, Qatar began supplying Syria with natural gas through Jordan to ease electricity cuts that are common in much of the Levant. The United Nations estimates that 90% of Syrians live in poverty, and the Syrian government has only been able to provide about two hours of electricity every day.
In a related effort to ease the strain on the war-ravaged country, over the weekend, Syria responded to US conditions for sanctions relief, pledging not to pose a threat to "Israel", and seeking talks on foreign fighters, including Palestinian fighters in Syria, among other pledges.
