Qatar to join Saudi Arabia in settling Syria's World Bank debt

Qatar has agreed to join Saudi Arabia in clearing Syria's outstanding debt to the World Bank, marking a significant step in the country’s efforts to re-enter the global economy.

The $15 million repayment was confirmed by Syrian Central Bank Governor Abdul Qader Hosri on April 24, Caliber.Az reports per Arab media.

The payment is being hailed by Damascus as a sign of increasing regional support for its reconstruction and normalisation efforts following the fall of former dictator Bashar al-Assad. This development could represent a pivotal moment in Syria's pursuit of reintegration into the international financial system.

In exclusive comments, Hosri said, "Saudi Arabia and Qatar have agreed to pay Syria’s debt to the World Bank, amounting to $15 million."

The announcement came during the Spring Meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C., where Syria participated for the first time in over two decades. Hosri described the event as a breakthrough. "Participation in the meetings represents the beginning of Syria’s integration into the global financial system and the start of the country’s economic transformation," he stated.

"We have begun taking serious steps to reform Syria’s financial institutions to align with international financial standards, enhance transparency, and support sustainable development." The joint decision by Saudi Arabia and Qatar is being seen as a crucial gesture towards Syria's economic recovery.

After nearly 14 years of civil war, the cost of Syria's reconstruction has been estimated in the hundreds of billions of dollars. Support from wealthy Gulf states is considered vital to rebuilding Syria’s devastated infrastructure and restoring public services.

However, progress remains severely hindered by US-led sanctions that limit international engagement with the Syrian government.

Hosri also noted that during the meetings, "influential parties within the international financial system have called for the lifting of international sanctions imposed on Syria to facilitate reconstruction efforts and begin assisting the Syrian government and people as they work to overcome the current difficult circumstances."

As part of the Spring Meetings, a closed-door session, sponsored by Saudi Arabia and co-hosted with the IMF and World Bank, brought together a high-level Syrian delegation, representatives from the G7, the European Union, and leaders of international financial institutions. Participants emphasised the importance of Syria's reconstruction and long-term stability.

Syria’s delegation also held discussions with World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva, both of whom affirmed their support for rebuilding Syria’s institutional capacity.

Furthermore, the IMF appointed prominent economist Ron van Rooden to lead its mission to Syria—the first appointment in 14 years. Syria’s economy was devastated under the Assad regime, whose violent crackdown on dissent led to a prolonged civil war, resulting in over $800 billion in economic losses and a reduction in the country’s GDP by more than 85 per cent.

The regime’s corruption and mismanagement have left Syria with a shattered economy, with over 90 per cent of Syrians living in poverty and millions facing chronic food insecurity.

By Aghakazim Guliyev