Qatar has joined Saudi Arabia in clearing Syria’s outstanding debt to the World Bank, according to Syrian Central Bank Governor Abdul Qader Hosri on Thursday.
The $15 million repayment is being hailed by Damascus as a sign of growing regional support for reconstruction and normalisation efforts following the fall of former dictator Bashar al-Assad.
The move could mark a pivotal development in the war-torn country’s bid to re-join the international financial system.
"Saudi Arabia and Qatar have agreed to pay Syria’s debt to the World Bank, amounting to $15 million", Hosri said in exclusive comments to The New Arab's Arabic sister outlet Al-Araby Al-Jadeed.
He made the announcement while attending the Spring Meetings of the International Monetary Fund (IMF) and World Bank in Washington DC, where Syria participated for the first time in over two decades.
Hosri described the meetings as a breakthrough.
"Participation in the meetings represents the beginning of Syria’s integration into the global financial system and the start of the country's economic transformation," he said.
"We have begun taking serious steps to reform Syria’s financial institutions to align with international financial standards, enhance transparency, and support sustainable development."
The joint decision by Saudi Arabia and Qatar is being seen as a key gesture toward Syria’s economic recovery.
After nearly 14 years of civil war, the cost of reconstruction has been estimated in the hundreds of billions of dollars. Support from wealthy Gulf states is considered essential to rebuilding Syria’s shattered infrastructure and restoring its public services.
However, progress remains severely hampered by US-led sanctions that restrict international engagement with the Syrian government.
Hosri noted that during the meetings, "influential parties within the international financial system have called for the lifting of international sanctions imposed on Syria, in order to facilitate reconstruction efforts and begin providing assistance to the Syrian government and people as they work to overcome the current difficult circumstances".
As part of the Spring Meetings, a closed-door session sponsored by Saudi Arabia and co-hosted with the IMF and World Bank brought together a high-level Syrian delegation, representatives from the G7, the European Union, and heads of international financial institutions. Participants "emphasized the importance of Syria's reconstruction and long-term stability".
Syria’s delegation also met with World Bank President Ajay Banga and IMF Managing Director Kristalina Georgieva, both of whom affirmed their support for rebuilding Syria’s institutional capacity.
In a notable development, the IMF appointed prominent economist Ron van Rooden to head its mission to Syria—the first such appointment in 14 years.
Syria’s economy was devastated under the Assad regime, whose violent crackdown on dissent, which led to a prolonged civil war, triggered over $800 billion in economic losses and reduced the country’s GDP by more than 85 percent.
The regime’s corruption and mismanagement left behind a broken economy, with over 90 percent of Syrians now living in poverty and millions facing chronic food insecurity.