Saudi Arabia and Qatar will pay Syria’s outstanding US$15 million debt to the World Bank, which could allow Syria to regain World Bank support as it seeks to recover from its civil war.
The two countries have supported Syria’s new government since Bashar al-Assad's regime fell last year. Saudi Arabia and Qatar announced the payment at a roundtable on Syria held during the World Bank’s meetings with the International Monetary Fund (IMF).
“There was broad recognition of the urgent challenges facing the Syrian economy and a collective commitment to support the authorities' efforts for recovery and development. Priority will be given to efforts to meet the critical needs of the Syrian people, institutional rebuilding, capacity development, policy reforms, and the development of a national economic recovery strategy,” said the World Bank Group (WBG), Saudi Arabia’s finance ministry, and the International Monetary Fund in a joint statement.
Saudi Arabia and Qatar’s loan repayment “will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,” the countries said.
This repayment will ensure Syria can access financial support for the development of “critical sectors”, per Saudi Arabia and Qatar, as well as international technical expertise and policy development.
The two countries also called on international and regional institutions to expand development efforts in Syria.
The roundtable meeting also saw representatives from Syria’s new government present their plans to stabilise and rebuild the country, following 14 years of civil war.
The United Nations Development Programme said in February that Syria is unlikely to return to its pre-war GDP level before 2080, at current growth rates.
The country’s GDP is less than half of its value before the war began in 2011, and around 90% of Syrians live in poverty.
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