By Maya Gebeily and Timour Azhari

Discussion on Support for Syria

DAMASCUS (Reuters) – Officials will talk about key steps to restore Syria’s support from the World Bank and International Monetary Fund during upcoming spring meetings. However, sanctions are a significant barrier to reconstruction, according to a U.N. official.

U.N. Development Programme Remarks

Abdallah Dardari, U.N. Development Programme’s assistant secretary-general, shared with Reuters in Damascus that a roundtable about Syria, hosted by Saudi Arabia and the World Bank, will occur alongside the annual meetings of these international financial entities in Washington.

> “It sends a message to the world and to Syrians that these major financial institutions are ready to assist,” he stated.

Saudi Arabia’s Financial Contributions

Reuters reported last week that Saudi Arabia aims to clear about $15 million in Syrian debts to the World Bank, clearing the path for potential grants for reconstruction and economic help for Syria. Subsequent reports indicated that the Saudis completed these payments.

Dardari explained that this payment enables the World Bank to aid Syria via its International Development Association, which finances low-income countries.

> “This is a significant item for Syria to negotiate with the World Bank. The Special Drawing Rights at the IMF represent another crucial aspect, alongside the policy and technical aid that both the Bank and Fund can provide.”

Background of Sanctions

Following the ousting of former Syrian leader Bashar al-Assad last year amidst a civil war lasting nearly 14 years, his successors have urged the international community to lift sanctions imposed during his era.

Currently, many sanctions remain, with the U.S. and other Western nations asserting that the new government must show a commitment to peaceful and inclusive governance.

Special Drawing Rights (SDRs)

Syria holds $563 million in Special Drawing Rights (SDRs) at the IMF. However, access to these funds requires approval from IMF members holding 85% of total votes, giving the U.S. an effective veto due to its 16.5% vote share.

Syria’s finance minister, central bank governor, and foreign minister are set to attend the spring meetings next week, marking the first high-level Syrian government delegation visit in two decades, and the first visit by the new authorities to the U.S. since Assad’s fall.

The U.S. has presented Syria with a list of conditions that could lead to some sanction relief if met. Dardari emphasized that sanctions significantly hinder Syria’s growth.

> “Syria needs tens of billions in investments and assistance, which cannot occur under stringent sanctions. Even easing sanctions is not enough; they must be comprehensively lifted.”

Investments and Infrastructure

With an exemption from the U.S. Treasury, the UNDP is set to mobilize up to $50 million for repairs to the Deir Ali power plant near Damascus. According to sources, the World Bank is looking into hundreds of millions in grants to enhance Syria’s electricity grid and support the public sector.

Abdelkader Husrieh, Syria’s central bank governor, mentioned that they wish to comply with global financial standards, yet sanctions continue to impede their economic progress.

> “We aspire to integrate into the international financial system and hope the global community aids in removing obstacles to this integration,” he stated.