Syria’s arrears to the World Bank total roughly $15m.
Saudi Arabia and Qatar have announced that they will settle Syria’s debt to the World Bank totalling roughly $15m, according to a statement published by the Saudi Press Agency, in the latest effort to help reverse the economic fortunes of a nation recently beset by civil war.
Both Gulf states have played a key role in the diplomatic outreach to Syria’s new interim government since the ouster of longtime leader President Bashar al-Assad in December.
“The ministries of finance in the kingdom of Saudi Arabia and the state of Qatar jointly announce their commitment to settle Syria’s outstanding arrears to the World Bank Group, totalling around $15 million,” the statement said on Sunday.
The statement came just days after Syria’s central bank governor and finance minister attended the International Monetary Fund and World Bank spring meetings for the first time in more than 20 years.
The World Bank had suspended operations in Syria when the civil war in the country began. The settlement of its arrears will enable it to resume accessing the bank’s financial support and technical advice.
“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 Saudi statement said.
“It will also unlock Syria’s access to financial support in the near term for the development of critical sectors.”
Much of Syria’s infrastructure has been destroyed by nearly 14 years of ruinous civil war, which began with a bloody crackdown on pro-democracy protests during the Arab Spring in 2011.
Al-Assad was ousted in a lightning offensive by Islamist-led rebels last December, and Syria’s new government has sought to rebuild the country’s diplomatic ties, including with international financial institutions.
The Syrian authorities are counting on the wealthy Gulf Arab states to play a pivotal role in financing the reconstruction of their war-ravaged nation and reviving its economy.
The government led by interim President Ahmed al-Sharaa also wants to transition away from the corrupt system that gave al-Assad loyalists privileged access to government contracts and kept key industries in the hands of the al-Assad family.
Earlier this month, a United Nations official said that Syria’s authorities should begin the process of economic recovery, without waiting for Western sanctions imposed under al-Assad’s rule to be lifted.