Saudi Arabia reportedly plans to pay off the $15 million Damascus owes the World Bank
Saudi Arabia plans to pay off Syria’s debt to the World Bank, Reuters reported on Monday, citing sources. The move could unlock international financing for the reconstruction of the war-torn country, the agency noted.
Syria saw a change of power late last year, when jihadist group Hayat Tahrir-al-Sham (HTS) launched a surprise offensive that took Damascus and ousted long-time President Bashar Assad. HTS leader Ahmed al-Sharaa became president and formed a new transitional government in March.
The World Bank is an international financial institution headquartered in Washington. However, as Syria remains under US sanctions, it is difficult to conduct international transactions. The $15 million arrears must be paid off before the institution can issue grants and other forms of assistance.
Al-Sharaa visited Saudi Arabia in February in his first official foreign trip since assuming office. However, an official from the Saudi Finance Ministry declined to confirm to Reuters plans by Riyadh to pay off Syria’s debt.
World Bank officials have discussed providing financing to help rebuild Syria’s power grid and to support public sector pay, two of the sources told Reuters.
According to Washington-based think-tank The Peterson Institute for International Economics (PIIE), Syria’s reconstruction costs are likely to exceed $250 billion.
Moscow has remained engaged with Syria’s new leadership, even though it granted Assad asylum after his ouster. Russian President Vladimir Putin said in February that Moscow was determined to “contribute to the improvement of the social and economic situation in Syria, including through providing humanitarian assistance.” The new government in Damascus has also expressed its desire to maintain good relations with Russia.
Syria has been under US sanctions since 2004, with the restrictions targeting individuals and entities that supported Bashar Assad. Despite his fall from power, the restrictions remain largely in place, potentially hindering Syria’s reconstruction efforts.