Saudi Arabia is planning to pay Syrian debts to the World Bank, three well-versed in the issue said it would pave the way for millions of dollars in grants to reconstruct it, supporting the country’s paralyzed public sector.
The previously unreported plan is the first known example of Saudi Arabia to fund Syria as Muslim-led rebels overthrew former leader Bashar al-Assad last year.
It may also be a sign that key Gulf Arab support for Syria is beginning to come true after previous plans, including initiatives to fund salaries, have been raised by uncertainty about US sanctions.
Last month, Qatar announced plans to improve the country’s small power supply by providing gas to Syria via Jordan.
A spokesman for the Saudi Treasury Ministry told Reuters that “we don’t comment on speculation, we will announce it if they become official.”
A media office for the Saudi Arabian government, a spokesman for the World Bank, and an official from the Syrian government did not immediately respond to requests for comment.
Syria has approximately $15 million arrears to the World Bank that must be paid off before international financial institutions approve grants and provide other forms of support.
However, Damascus is short of foreign currency, and according to two people familiar with the issue, previous plans to use frozen assets overseas to repay debts did not come to fruition.
World Bank officials have been heavily damaged by years of war and are discussing the provision of funding to help rebuild the country’s electricity grid to support public sector salaries, two sources said.
Reuters reported on Saturday that Syria will send high-level delegations to Washington later this month for the World Bank and IMF’s annual spring meeting, marking the first visit to the US by Syrian officials since Assad’s ouster.
MNA/