Conflicting reports: No Saudi confirmation yet regarding paying Syria’s debt to the World Bank
Western media reports revealed that Saudi Arabia is considering an unprecedented step to repay Syria’s debt to the World Bank, amounting to approximately $15 million.
This initiative, if implemented, would be an important preliminary step toward launching major financial grants aimed at supporting reconstruction efforts and revitalizing Syria’s struggling public sector.
According to informed sources cited by the media, this move by Riyadh could open the door to international aid that had been suspended due to unpaid debts, at a time when Damascus is suffering from a severe liquidity crisis and a shortage of foreign currency.
However, Saudi authorities have not yet officially confirmed this information, as spokesperson for the Saudi Ministry of Finance simply said, “We don’t comment on speculation… We’ll issue official statements in due course when matters become clear”.
Other official bodies, such as the Saudi government media office and the World Bank, also refrained from making any statements on the matter, while Syrian officials also didn’t comment.
The potential initiative is part of a growing Gulf effort to reintegrate Syria into its Arab world after years of diplomatic stagnation.
Some previous initiatives, such as the Qatari plan to support the salaries of government employees in Syria, were halted due to legal uncertainty related to US sanctions imposed on the Syrian regime.
The World Bank reclassified Syria as a low-income country in 2018, following a more than 50% collapse in GDP between 2010 and 2020, as a result of the ongoing war and stifling economic crises.
In a recent report, the United Nations Development Program noted that international sanctions have played a pivotal role in isolating Syria from the global financial system, leading to widespread restrictions on trade, higher import costs, and a reduction in the country’s exports and remittances.
According to World Bank regulations, repayment of outstanding debts is a prerequisite for Syria to receive any new grants or loans.
Previous attempts have been made to settle these amounts using frozen Syrian assets abroad, but these efforts have so far been unsuccessful.
The potential Saudi move, if implemented, is expected to help break the financial deadlock and pave the way for a new phase of Arab and international support for Syria, as part of a broader vision to rehabilitate the Syrian economy and lift it out of its isolation.
