Saudi Arabia To Pay Off Syria's World Bank Debt

Saudi Arabia is planning to pay off the debts owed by Syria to the World Bank, according to three sources cited by Reuters on Monday. "Saudi Arabia plans to pay off Syria's debts to the World Bank … paving the way for the approval of millions of dollars in grants for reconstruction and to support the country's paralyzed public sector," the sources said. 

"Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialize … 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," they added. 

A Saudi Finance Ministry source told the outlet that "We do not comment on speculation, but make announcements, if and when they become official."

Reuters had reported over the weekend that Syria will be sending a delegation to the US for the annual World Bank and International Monetary Fund (IMF) meetings in Washington later in April. 

The extremist-led Syrian administration of Ahmad al-Sharaa, which assumed power after the fall of former president Bashar al-Assad’s government, has been hoping to secure some relief from the heavy sanctions imposed on Damascus over the years. 

The UK and a number of EU countries have lifted some of their sanctions on Syria, and Washington provided a six-month exemption from some sanctions in January. The US has also given Syria a list of demands that it wants the Syrian government to fulfill in exchange for partial relief from sanctions, reports said late last month.

These include the destruction of any chemical weapons, cooperation on "counter-terrorism," and ensuring foreign fighters are not granted top positions. Several militants who fought with Al-Qaeda and ISIS-linked organizations against the former government have been incorporated into the army and given posts of command. 

Syrian government forces killed over 1,500 Alawites in a series of bloody sectarian massacres early last month. Tens of thousands have been displaced and have fled to Lebanon. 

Syria’s debt at the World Bank stands at around $15 million, which must be paid before the international financial institution can approve a grant and any other kind of financial assistance.  Additionally, the Syrian economy has been decimated by years of war and sanctions. 

The UN issued a report on February 20 highlighting that the Syrian economy will not be able to recover fully before 2080, 55 years from now.

A Qatari official announced on March 13 that Doha will be providing Syria with natural gas to boost the country’s energy sector. However, the new government’s extremist nature has caused concern for some states. 

Three European envoys warned Syrian authorities during a meeting in Damascus last month that international support for the country would depend on the government "cracking down" on extremist elements, according to Reuters. 

"The abuses that have taken place in recent days are truly intolerable, and those responsible must be identified and condemned. There is no blank check for the new authorities," a French Foreign Ministry spokesman told the outlet when asked about the message delivered by the European envoys in Damascus.