Saudi Arabia, Qatar to settle Syria’s World Bank debt

RIYADH: Saudi Arabia and Qatar announced on Sunday that they would settle Syria’s debt to the World Bank totalling roughly $15 million, according to a statement published by the Saudi Press Agency.

Both Gulf states have played a key role in the diplomatic outreach to Syria’s new rulers since the ouster of longtime strongman Bashar al-Assad in December.

“The ministries of finance in the kingdom of Saudi Arabia and the state of Qatar jointly announce their commitment to settle Syria’s outstanding arrears to the World Bank Group, totalling around $15 million,” the statement said.

The statement came just days after Syria’s central bank governor and finance minister attended the IMF and World Bank spring meetings for the first time in more than 20 years.

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Much of Syria’s infrastructure has been destroyed by 14 years of war, which began with a bloody crackdown on pro-democracy protests.

Assad was ousted in a lightning offensive by Islamist-led rebels in December, and Syria’s new government has sought to rebuild the country’s diplomatic ties, including with international financial institutions.

The World Bank suspended operations in Syria when the war began. The settlement of its arrears will enable it to resume accessing the bank’s financial support and technical advice.

“This commitment will pave the way for the World Bank Group to resume support and operations in Syria after a suspension of more than 14 years,” the statement said.

“It will also unlock Syria’s access to financial support in the near term for the development of critical sectors.”

The Syrian authorities are counting on the wealthy Gulf Arab states to play a pivotal role in financing the reconstruction of their war-ravaged nation and revive its economy.