Saudi Arabia Plans to Pay Off Syria’s Debts
World
Saudi Arabia is planning to pay off Syria’s debts to the World Bank. This decision could open the door to the approval of multimillion-dollar grants to finance the country’s reconstruction.
These plans had not been previously disclosed and represent the first known instance of Saudi Arabia providing financial support to Syria. It will also be the first aid offered since former leader Bashar al-Assad was overthrown by Islamist-led rebel groups in 2024.
It may also indicate that strategic support for Syria from Gulf Arab states is finally materializing. Previously, Qatar proposed a plan to fund public sector salaries, but it was suspended due to U.S. sanctions.
Last month, Qatar announced a plan to supply gas to Syria via Jordan, aimed at improving the country's weak electricity supply. Sources told Reuters that this move had received approval from the United States.
Syria owes approximately $15 million to the World Bank. Unless this debt is repaid, the international financial institution cannot approve grants or provide other types of assistance.
However, Damascus lacks foreign currency reserves. A prior plan to settle the debt using frozen assets abroad failed to materialize.
According to sources, World Bank representatives discussed the possibility of financing the reconstruction of Syria’s power grid, which was severely damaged during years of war, as well as supporting salaries for public sector employees.
On Monday, a technical delegation from the World Bank held a meeting with Syria’s Finance Minister Mohammed Yusr Bernieh. This was the first public meeting between the Syrian government and the World Bank, where both sides discussed strengthening financial and economic cooperation.
It may also indicate that strategic support for Syria from Gulf Arab states is finally materializing. Previously, Qatar proposed a plan to fund public sector salaries, but it was suspended due to U.S. sanctions.
Last month, Qatar announced a plan to supply gas to Syria via Jordan, aimed at improving the country's weak electricity supply. Sources told Reuters that this move had received approval from the United States.
Syria owes approximately $15 million to the World Bank. Unless this debt is repaid, the international financial institution cannot approve grants or provide other types of assistance.
However, Damascus lacks foreign currency reserves. A prior plan to settle the debt using frozen assets abroad failed to materialize.
According to sources, World Bank representatives discussed the possibility of financing the reconstruction of Syria’s power grid, which was severely damaged during years of war, as well as supporting salaries for public sector employees.
On Monday, a technical delegation from the World Bank held a meeting with Syria’s Finance Minister Mohammed Yusr Bernieh. This was the first public meeting between the Syrian government and the World Bank, where both sides discussed strengthening financial and economic cooperation.
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