Syria hopes for full lifting of US sanctions, begins debt restructuring process

Syria is optimistic that US sanctions will be fully lifted in the coming months and has already initiated steps to restructure its sovereign debt, Economy Minister Mohammad Nidal al-Shaar told Reuters.

US President Donald Trump ordered the removal of most sanctions on Syria in May following a meeting with Syrian President Ahmed al-Sharaa. However, the Caesar Syria Civilian Protection Act of 2019, which legally authorizes those sanctions, remains in force under US law.

“We have to do some push and some lobbying to continue with this path that started in the right direction, and we're hoping by the end of the year the bill will reach the president, and hopefully he'll sign it,” al-Shaar said on the sidelines of a conference in London.

“And once that happens, then we are sanctions-free.”

Al-Shaar also revealed that Syria plans to introduce a new currency early next year, as part of broader efforts to stabilize its battered economy.

“We're consulting with many entities, international organisations, experts, and eventually it will come very soon,” he said.

Sources told Reuters in August that new banknotes are expected to be issued in December, with two zeros removed from the currency in an effort to restore public confidence in the severely devalued Syrian pound.

Since the outbreak of civil war in 2011, the pound has lost over 99% of its value. Once traded at 50 pounds to the US dollar, the current exchange rate hovers around 10,000. Although the currency has shown relative stability in recent months, its purchasing power remains critically low.

The move comes after a 14-year conflict, which concluded in December with the ouster of long-time President Bashar al-Assad, left the country's economy and infrastructure in ruins.

Regarding Syria’s sovereign debt, al-Shaar noted that although the total is not substantial, the government has already embarked on a restructuring process.

“The sovereign debt that we have, which is not very big actually, will be restructured,” he said, adding that Syria would seek “grace periods and other relief” from its creditors.

The cost of rebuilding Syria is staggering. In a report released on October 21, the World Bank estimated the reconstruction bill at $216 billion, calling it a “conservative best estimate.” The bulk of this cost stems from “direct physical damages to infrastructure, residential buildings, and non-residential buildings,” the report noted.

Al-Shaar, however, suggested the actual cost could be significantly higher:

“The amount could be over a trillion dollars if the rebuild brings the country's infrastructure up to date,” he said, acknowledging that such a figure would be spread over an extended period.

Syria’s post-war recovery hinges on several complex factors, including international support, debt relief, economic reform, and the full lifting of sanctions — all of which are now under active discussion.

By Vafa Guliyeva