Saudi Arabia Plans to Pay Off Syria’s Debts to World Bank
Background
Saudi Arabia plans to pay off Syria’s debts to the World Bank, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country’s paralyzed public sector. This move marks the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year.
Significance
This development may also be a sign that crucial Gulf Arab support for Syria is beginning to materialize after previous plans, including an initiative by Doha to fund salaries, were held up by uncertainty over U.S. sanctions. Last month, Qatar announced a plan to provide Syria with gas via Jordan to improve the nation’s meager electricity supply, a move that sources told Reuters had Washington’s nod of approval.
World Bank Assistance
Syria has around $15 million in arrears to the World Bank, which must be paid off before the international financial institution can approve grants and provide other forms of assistance. World Bank officials have discussed providing financing to help reconstruct the country’s power grid, heavily damaged by years of war, and also to support public sector pay.
U.S. Sanctions
Tough U.S. sanctions imposed during Assad’s rule remain in place. In January, the U.S. issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect. Last month, the U.S. gave Syria a list of conditions to fulfill in exchange for partial sanctions relief, but the administration of U.S. President Donald Trump has otherwise engaged little with the country’s new rulers.
Syrian Government Response
A spokesperson for the Saudi Ministry of Finance told Reuters, "We do not comment on speculation, but make announcements, if and when they become official." The Saudi government’s media office, a World Bank spokesperson, and a Syrian government official did not immediately respond to requests for comment.
Syrian Reconstruction Efforts
Reuters reported on Saturday that Syria would send a high-level delegation to Washington for the yearly spring meetings of the World Bank and IMF later this month, marking the first visit by Syrian officials to the U.S. since Assad’s ouster. It is unclear whether the Syrian delegation will meet with any U.S. officials.
Conclusion
Saudi Arabia’s plan to pay off Syria’s debts to the World Bank is a significant development in the country’s reconstruction efforts. This move could pave the way for the approval of millions of dollars in grants and provide much-needed support to Syria’s public sector. However, the effectiveness of these efforts will depend on the resolution of the U.S. sanctions issue and the country’s ability to rebuild its infrastructure and economy.
Frequently Asked Questions
Q: What is the significance of Saudi Arabia’s plan to pay off Syria’s debts to the World Bank?
A: This move marks the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year, and could pave the way for the approval of millions of dollars in grants for reconstruction and to support the country’s public sector.
Q: What are the conditions for the U.S. to lift its sanctions on Syria?
A: The U.S. has given Syria a list of conditions to fulfill in exchange for partial sanctions relief, but the administration of U.S. President Donald Trump has otherwise engaged little with the country’s new rulers.
Q: What is the current state of Syria’s economy?
A: Syria has around $15 million in arrears to the World Bank and is short of foreign currency. The country’s infrastructure and economy have been heavily damaged by years of war.