Saudi Arabia plans to pay off Syria’s debts to the World Bank, three people familiar with the matter said, paving the way for the approval of millions of dollars in grants for reconstruction and to support the country’s paralysed public sector.
The plans, which have not been previously reported, would be the first known instance of Saudi Arabia providing financing for Syria since Islamist-led rebels toppled former leader Bashar al-Assad last year.
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.
A spokesperson for the Saudi Ministry of Finance said, “We do not comment on speculation, but make announcements, if and when they become official.”
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 US sanctions.
Last month, Qatar announced a plan to provide Syria with gas via Jordan to improve the nation’s meagre electricity supply, a move that sources told Reuters had Washington’s nod of approval.
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.
A technical delegation from the World Bank met with Syria’s Finance Minister Mohammed Yosr Bernieh on Monday, according to the Syrian state news agency Sana.
The meeting, which was the first public meeting between the Syrian government and the World Bank, included discussions on strengthening financial and economic ties between the two sides.
Bernieh also highlighted the negative effects of the international sanctions imposed on Syria and the policies of the former regime on the country’s financial and banking sector.
