Saudi Arabia and Qatar have agreed to settle Syria’s outstanding arrears of around $15 million to the World Bank, according to a statement published by the Saudi Press Agency. This payment will clear the path for the approval of new grants to support Syria’s reconstruction efforts and revive its struggling public sector.
Both Gulf states have played a key role in the diplomatic efforts to engage Syria’s new rulers following the ouster of longtime strongman Bashar al-Assad in December. The statement came just days after Syria’s central bank governor and finance minister attended the IMF and World Bank Spring meetings for the first time in more than 20 years.
After 14 years of war that devastated much of its infrastructure, Syria’s new government is working to rebuild diplomatic ties, including with international financial institutions. The World Bank, which suspended operations in Syria at the onset of the war, is expected to resume financial support and technical assistance once Syria’s $15 million arrears are settled.
According to the statement, “This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than fourteen years,” Saudi Arabia and Qatar said in the statement. It will also unlock Syria’s access to financial support in the near term for the development of critical sectors.”
Both countries also urged international and regional financial institutions to quickly resume and expand their development efforts in Syria. Syria currently owes around $15 million to the World Bank, an amount that must be cleared before the international financial institution can approve grants and extend further assistance.
