Enab Baladi – Marina Merhej

After more than two decades of absence from the international financial arena, Syria is returning through an official delegation that included the Syrian Minister of Finance, Mohammed Yosr Bernieh, and the Governor of the Central Bank of Syria (CBS), Abdul Qader Hasriyeh, to participate in the Spring Meetings of the International Monetary Fund (IMF) and the World Bank.

These meetings were held in the US capital, Washington, from April 21 to 26, with the participation of more than ten thousand figures from ministers, central bank governors, economists, as well as representatives from international organizations and financial institutions, and media professionals.

The Syrian Minister of Finance stated in press remarks after one of the most prominent meetings regarding Syria that the meeting was extremely successful, with a large number of ministers from the G7 and the Arab region participating, alongside presidents and directors of regional and international institutions and from the European Union.

Participants expressed significant support and an “unprecedented” eagerness to contribute to the rebuilding and stability of Syria, according to the Syrian minister.

Following the meeting, Ron van Roden was appointed as the head of the International Monetary Fund mission to Syria, which Bernieh considers an important step paving the way for constructive dialogue between the Fund and Syria, aiming to drive economic recovery and improve the living conditions of the Syrian people.

Expected goals from participation

The current government is seeking, through its participation in the Spring Meetings of the International Monetary Fund and the World Bank, to reconnect Syria with international financial institutions after years of isolation imposed by the previous regime’s behavior. This indicates a serious attempt to rebuild international economic relations, according to Dr. Hassan Hazouri, a professor at the Faculty of Economics at Aleppo University.

In a conversation with Enab Baladi, Hazouri explained that the expected goals from this international participation can be summarized in several key points regarding the following:

• Partially breaking economic and diplomatic isolation.
• Obtaining technical or advisory support.
• Attempting to convince international institutions to reassess the Syrian economic situation.
• Coordinating with friendly countries during these meetings.
• Trying to negotiate humanitarian exemptions or conditional funding channels.

With the continuation of US sanctions on Syria, the World Bank or the International Monetary Fund cannot provide funding or assistance directly without the approval of major influential countries, especially the United States. This means that the results could be limited unless the political environment changes or broader international understandings are reached.

Obstacles to obtaining international support

There are multiple obstacles that prevent the World Bank and the International Monetary Fund from providing direct support to Syria, some of which reach a level of complexity, according to Dr. Hassan Hazouri. These obstacles combine political, legal, and economic considerations and can be summarized in several points, including:

• International sanctions on Syria, especially the Caesar Act, which prevents international institutions from financing or supporting any Syrian government entity, exposing any international entity wishing to provide assistance to legal and political risks.
• Lack of unified international recognition of the new Syrian government as a legitimate entity for obtaining funding. Although Syria remains a member of the World Bank and the International Monetary Fund, some influential countries (such as the United States and the European Union) do not consider the current Syrian government a “legitimate partner” for receiving funding without clear political conditions.
• Lack of a safe and transparent environment for delivering support. Both the World Bank and the International Monetary Fund require high guarantees of governance and transparency.
• Unavailability of reliable economic statistics and data. The International Monetary Fund relies on the presence of transparency in economic data such as GDP, public debt, and state budgets, which are currently inaccurate or unavailable in Syria, making it difficult to assess the financial situation.
• The need for international political consensus; providing official support requires agreement among the contributing countries managing the two funds. However, the political division surrounding the situation in Syria makes it difficult to agree on providing any direct support.
• The absence of a clear or executable economic reform plan. International institutions require an “economic reform program” before providing funding. So far, there is no complete and transparent plan in Syria that meets the criteria of the Fund or the Bank.

Possibility of benefiting and its risks

Academic and economic expert Dr. Ayham Assad believes that it is possible to benefit from the assistance of the International Monetary Fund and the World Bank through non-conditional and non-repayable financial grants, which do not impose any political or economic conditions on the Syrian government in the future. These grants may include support for the statistical apparatus, training and developing administrative staff, and supporting financial banking systems.

Through bilateral meetings between the Syrian Minister of Finance, Mohammed Yosr Bernieh, and the World Bank’s Operations Director, Anna Bjerde, and the Bank’s Vice President for the Middle East and North Africa, Ousmane Dione, an agreement was reached to establish a comprehensive and structural work program to support Syria, covering the years 2025 and 2026, which includes key areas, chief among them launching a grant-supported program to reform the electricity sector within the next three months.

If Syria resorts to borrowing from the two international institutions, the loans will be conditioned with clear and direct economic conditions that lead the Syrian economy towards more economic liberalization, which may not be sustainable given the current state of the Syrian economy, such as liberalizing the exchange rate, privatization, abolishing subsidies, and liberalizing foreign trade, according to the view of expert Ayham Assad.

The economic expert added that borrowing conditions might be linked to unannounced political and economic policies tied to US agendas and its desire to exert more control over the Syrian economy and its resources.

In this case, the Syrian economy could become further burdened with international debts and enter a cycle of liberal policies from the Fund and Bank, alongside the absence of developing good national management of economic resources and a weak social protection system, deepening the economic and financial crises in Syria.

According to Reuters, Syria’s special drawing rights at the International Monetary Fund amount to 563 million dollars. However, accessing these funds requires the approval of members of the fund holding 85% of the total votes, which gives the United States an effective veto due to its 16.5% ownership.