Saudi Arabia intends to settle Syria’s debts to the World Bank, a report said on Monday, a move that could unlock millions of dollars in aid for rebuilding efforts and revitalizing the country’s stalled public sector.
The plans, reported by Reuters, would be the first known instance of Saudi Arabia providing financing for Syria since opposition forces toppled longtime dictator Bashar Assad last year. It 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.
“We do not comment on speculation, but make announcements, if and when they become official,” a spokesperson for the Saudi Ministry of Finance told Reuters.
The Saudi government’s media office, a World Bank spokesperson and a Syrian government official did not immediately respond to requests for comment.
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.
But Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialize, according to two people familiar with the matter.
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, two of the sources said.
Syria will send a high-level delegation to Washington for the yearly spring meetings of the World Bank and International Monetary Fund (IMF) later this month, Reuters reported on Saturday, 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.
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 fulfil 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.
