Saudi Arabia is rumored to be planning to pay off Syria’s $15 million debt to the World Bank. This could be crucial for Syria to access credit.

It is claimed that Saudi Arabia is planning to settle Syria’s debts to the World Bank. Three sources familiar with the matter who spoke to Reuters stated that such a move could pave the way for millions of dollars in credit approval to support and finance the paralyzed public sector of post-Bashar al-Assad Syria for reconstruction efforts. Riyadh’s action would also mean Saudi Arabia providing financing to the new Syrian government for the first time.

IN ORDER TO APPROVE CREDIT, DEBTS MUST BE PAID OFF
A spokesperson from the Saudi Arabian Ministry of Finance stated to Reuters, “We do not comment on speculation, but when and if it is formalized, we make timely announcements.” The media office of the Saudi Arabian government, the World Bank spokesperson, and Syrian government officials did not respond to requests for comments on the matter. Syria currently has a delayed $15 million debt to the World Bank. For international financial institutions to approve credit applications and provide similar aid, this debt must be paid off.

According to two sources who spoke to Reuters, Syria does not have enough foreign currency, and a plan to pay off the debts using frozen assets abroad has not been implemented. The World Bank officials considered providing financing to help rebuild Syria’s war-damaged electricity grid and assist in making payments in the public sector, as stated by the information given by the two sources.

The news reported on Saturday mentioned that Syria will send a high-level delegation to Washington, DC this month for meetings with the World Bank and International Monetary Fund (IMF). If it happens, this will be the first visit by Syrian officials to the United States since the fall of the Assad regime. However, it is unclear whether the delegation will meet with U.S. officials.