Syria seeks expanded World Bank cooperation on economic reforms

TDT | Manama

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Syria is seeking to deepen cooperation with the World Bank to advance financial, economic and institutional reforms, Finance Minister Mohammed Yisr Barnieh said Thursday.

Barnieh met World Bank Middle East Director Dahlia Khalifa in Damascus to discuss economic reforms, social protection and sustainable development programs, according to the Finance Ministry.

The meeting focused on accelerating projects already approved under existing grants, while officials reviewed proposed reforms to Syria's pension, retirement and social insurance systems, including restructuring the institutions overseeing them.

Housing finance was also discussed, with officials considering updates to mortgage laws and financial instruments, development of the mortgage finance system and Real Estate Finance Supervisory Authority, and measures to expand access to affordable housing loans.

The talks also addressed efforts to improve governance, efficiency and competitiveness at state-owned economic and financial institutions. Proposed measures include gradually converting some entities into joint-stock companies and restructuring state-owned financial institutions.

Officials further discussed fiscal policy, economic growth and the Finance Ministry's broader reform strategy. Potential World Bank support for improving livelihoods and strengthening social protection programs was considered, with emphasis on better targeting assistance toward vulnerable groups.

Digital transformation in financial institutions and plans for a public-private partnership knowledge center were also included in the discussions.

The meeting covered the "Syria Without Camps" initiative, part of the country's recovery efforts, and potential World Bank support for the voluntary and safe return of displaced Syrians through multisector development projects.

Improving Syria's business and investment environment was another priority. The World Bank said it would continue providing technical assistance and send specialized missions to Damascus to support financial reform and economic development.

The meeting came a week after the World Bank approved a $100 million grant to help Syria establish a modern, secure and digitally enabled financial sector.

After about 14 years of conflict, Syria's financial system remains heavily dependent on cash, with limited financial intermediation and outdated digital-payment infrastructure. The World Bank said strengthening the sector will be crucial for recovery, supporting trade, investment, remittances, payments and the secure delivery of humanitarian assistance.