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Saudi Arabia and Qatar have announced their intention to settle Syria’s outstanding debt to the World Bank, marking a significant step towards providing much-needed financial assistance for postwar reconstruction and public-sector salaries in the conflict-ravaged country.
The pledge of approximately $15 million is a crucial lifeline for Syria, particularly as it marks the first financial aid from Saudi Arabia following the fall of Bashar al-Assad’s regime last year – a regime that the kingdom had long opposed.
In a joint statement issued during the spring meetings of the World Bank and IMF in Washington, Saudi Arabia and Qatar stated that this commitment will enable the World Bank Group to resume its support and operations in Syria after a suspension of more than 14 years.
Syria’s economy has been decimated by over a decade of war and extensive sanctions, posing significant challenges for the new government led by former rebels from the Islamist group Hayat Tahrir al-Sham.
While Saudi Arabia and its Gulf neighbors have increased humanitarian aid to Syria in recent months, the plan to settle the country’s debt signals a new chapter in Saudi’s involvement in Syria as it seeks to bolster its influence in the region. This includes welcoming the Syrian leader on his inaugural foreign trip in February.
Mohammed al-Jadaan, the finance minister of Saudi Arabia, emphasized the importance of proceeding cautiously with Syria due to various factors, including sanctions. However, he also stressed the need for the international community to provide more support to war-torn countries in the region, such as Yemen, Sudan, Lebanon, and the Palestinian territories.
During this week’s World Bank and IMF meetings in Washington, Syria’s central bank governor and finance minister made their first appearance in over two decades, marking a significant milestone in the country’s efforts to rebuild diplomatic ties with regional and global powers, as well as international financial institutions.
Officials from the IMF and World Bank underscored the importance of credible economic data and the reconstruction of the central bank to support Syria’s recovery efforts.
Overall, the commitment from Saudi Arabia and Qatar to settle Syria’s debt represents a crucial step towards providing much-needed financial assistance for the reconstruction and stabilization of the war-torn country. It also highlights the growing importance of international cooperation and support in addressing the challenges faced by conflict-affected nations in the Middle East.
