Saudi Arabia considers settling Syria's arrears to World Bank
Saudi Arabia is planning to pay off Syria's debts to the World Bank, paving the way for the approval of millions of dollars in grants for reconstruction and supporting the country's paralysed public sector, Reuters reported on Monday.
The plans, which have not been previously reported, would be the first known instance of Saudi Arabia providing financing for Syria since rebels toppled former president Bashar Al Assad last year.
It would also be a sign of crucial Gulf Arab support for Syria beginning to materialise, after previous plans, including an initiative by Qatar to fund salaries, were held up by uncertainty over US sanctions. Last month, Qatar announced a plan to provide Syria with gas through Jordan to improve the nation's meagre electricity supply.
A representative for the Saudi Ministry of Finance refused to confirm the move, telling Reuters: "We do not comment on speculation, but make announcements, if and when they become official."
The Saudi government's media office, a World Bank representative and a Syrian government official did not immediately respond to the agency's requests for comment.
Syria has about $15 million in arrears to the World Bank which must be paid off before the international financial institution can approve grants and provide other forms of assistance.
But Damascus is short of foreign currency and a previous plan to pay off the debts using assets frozen abroad did not materialise, Reuters said.
Sources said World Bank officials have discussed providing financing to help reconstruct the country's power grid, heavily damaged by years of civil war, and also to support public sector pay.
Reuters reported on Saturday that Syria would send a high-level delegation to Washington for the annual spring meetings of the World Bank and IMF later this month, marking the first visit by Syrian officials to the US since Mr Al Assad's overthrow.
It is unclear whether the Syrian delegation will meet with any US officials.
Tough US sanctions imposed during the Assad regime's rule remain in place.
In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.
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