No, it’s not Pakistan! In a dramatic breakthrough for post-conflict Syria, Saudi Arabia and Qatar have offered to settle Syria’s $15 million World Bank debt—potentially opening the door to a new era of international assistance after more than a decade of economic estrangement. The development, which was made public on the sidelines of last week’s World Bank and IMF meetings in Washington, could enable Syria to reconnect with global financial institutions and access essential development assistance.
Syria’s Economic Collapse
The economy of the country is still in shambles after a 14-year civil war that resulted in the removal of long-time ruler Bashar al-Assad. The war destroyed industries and infrastructure. Now, more than 90% of Syrians are poor, and unemployment still rises. The Syrian pound has fallen from 50 to 15,000 per U.S. dollar, indicating a complete loss of economic stability.
In spite of the change in regime, the economic situation for Syrians has not seen much change. In the new rebel government, strict policies have contributed to public misery—banks are short of liquidity, subsidies have been cut, and scores of civil servants have been fired. Long bank queues and rampant inflation have become the new norm.
Mixed Reactions from the International Community
While the Syrian government in Damascus had shown “deep gratitude” to the Gulf nations for their support, wider global reactions are still wary. Several Western powers, such as the EU and the UK, have started to relax sanctions. The U.S. issued a six-month general license, granting partial exemptions. But the U.S. still insists on stiff conditions—especially a decline in Iranian influence and worries about new President Ahmed al-Shara‘s previous connections to Al-Qaeda.
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A Symbolic but Fragile Step Forward
Saudi Arabia and Qatar indicated their move came after Syria made a proposal centred on stabilisation, poverty alleviation, and development. A statement issued jointly by major financial officials, such as the IMF and World Bank, recognised the “urgent challenges” facing Syria and signalled collective intent to help relief efforts.
Can Financial Relief Spark Real Change?
The $15 million payment is small in dollar amounts, but its implications are sweeping. It’s a regional acceptance of dealing with Syria’s rebuilding. Whether that amounts to actual progress for Syrians—or is yet another political lightning rod—can’t be said yet.
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