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The World Bank has officially restored Syria’s right to conduct monetary transactions after Saudi Arabia and Qatar jointly paid off its $15.5 million debt. This is stated in the official statement of the institution, published on 16 May, according to the Associated Press.
“We are pleased that the cancellation of Syria’s debt will allow the World Bank Group to resume cooperation with the country and meet the development needs of the Syrian people,” the bank said.
This refers to the debt to the International Development Association, a World Bank structure that provides concessional loans to the poorest countries. Saudi Arabia and Qatar first announced their intention to pay off Damascus’ debt back in April. The Syrian authorities then welcomed the decision as a signal of the beginning of the country’s reconstruction after more than a decade of war.
According to the UN, Syria is currently experiencing a deep humanitarian crisis: over 90% of the population lives below the poverty line, and electricity is available for only two hours a day.
Analysts estimate that the total needs for the full restoration of the country’s infrastructure and economy are about $400 billion.
Experts point out that the payment of the debt by the allies can not only improve Syria’s economic prospects, but also strengthen the regional positions of Riyadh and Doha amid the ongoing reformatting of influences in the Middle East.
