Reuters reports that a Gulf patron could pay off part of Syria's international debt
Saudi Arabia is reportedly set to cover the $15 million debt Syria owes to the World Bank, according to a Reuters report on Monday, which cited anonymous sources. This financial move could pave the way for international funding aimed at the...
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Saudi Arabia is reportedly set to cover the $15 million debt Syria owes to the World Bank, according to a Reuters report on Monday, which cited anonymous sources. This financial move could pave the way for international funding aimed at the reconstruction of the war-torn nation, the agency noted.
Late last year, Syria experienced a power shift when the jihadist group Hayat Tahrir-al-Sham launched a surprise offensive, resulting in the capture of Damascus and the ousting of long-time President Bashar Assad. Following this upheaval, HTS leader Ahmed al-Sharaa was appointed president and established a new transitional government in March.
The World Bank, based in Washington, serves as an international financial institution. However, Syria is currently under US sanctions, complicating its ability to engage in international financial transactions. Before the World Bank can extend grants or other assistance, the outstanding $15 million in debt must be settled.
In February, Al-Sharaa made his first official foreign trip to Saudi Arabia. Nonetheless, a representative from the Saudi Finance Ministry did not confirm to Reuters whether Riyadh intends to pay off Syria's debt.
World Bank officials have been in discussions about potential financing to help restore Syria’s power grid and support public sector salaries, as stated by two sources familiar with the matter.
The Peterson Institute for International Economics, based in Washington, estimates that the costs associated with Syria’s reconstruction could surpass $250 billion.
Moscow has maintained its ties with Syria’s new leadership, despite having previously granted asylum to Assad following his removal from power. Russian President Vladimir Putin indicated in February that Moscow is committed 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 an interest in fostering good relations with Russia.
Since 2004, Syria has been under US sanctions aimed at individuals and entities that supported Bashar Assad. Despite his removal from power, these restrictions remain largely in effect, which may pose challenges to Syria’s reconstruction efforts.
Thomas Evans for TROIB News
Late last year, Syria experienced a power shift when the jihadist group Hayat Tahrir-al-Sham launched a surprise offensive, resulting in the capture of Damascus and the ousting of long-time President Bashar Assad. Following this upheaval, HTS leader Ahmed al-Sharaa was appointed president and established a new transitional government in March.
The World Bank, based in Washington, serves as an international financial institution. However, Syria is currently under US sanctions, complicating its ability to engage in international financial transactions. Before the World Bank can extend grants or other assistance, the outstanding $15 million in debt must be settled.
In February, Al-Sharaa made his first official foreign trip to Saudi Arabia. Nonetheless, a representative from the Saudi Finance Ministry did not confirm to Reuters whether Riyadh intends to pay off Syria's debt.
World Bank officials have been in discussions about potential financing to help restore Syria’s power grid and support public sector salaries, as stated by two sources familiar with the matter.
The Peterson Institute for International Economics, based in Washington, estimates that the costs associated with Syria’s reconstruction could surpass $250 billion.
Moscow has maintained its ties with Syria’s new leadership, despite having previously granted asylum to Assad following his removal from power. Russian President Vladimir Putin indicated in February that Moscow is committed 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 an interest in fostering good relations with Russia.
Since 2004, Syria has been under US sanctions aimed at individuals and entities that supported Bashar Assad. Despite his removal from power, these restrictions remain largely in effect, which may pose challenges to Syria’s reconstruction efforts.
Thomas Evans for TROIB News
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