Syria Advances Fiscal Reform with New World Bank Support

Syria is entering a pivotal stage of financial and economic reform with the backing of the World Bank. A newly approved $20 million grant from the International Development Association (IDA) is intended to strengthen fiscal governance, restore investor confidence, and guide the country’s public finances toward a more transparent and efficient framework.

Finance Minister Mohammad Yasser Barneya announced that the World Bank’s Executive Board endorsed the funding last Thursday. He explained that the central aim is to reinforce accountability in the management of public funds. A key component of the initiative is the creation of the Sovereign External Assistance Finance Section (SEAFS) within the Ministry of Finance, which will coordinate national and international projects while ensuring rigorous oversight of financial aid.

From Fragmentation to Digital Oversight

Economic specialists describe the reform as a shift from scattered, manual procedures to a unified digital system. The new platform enables real-time monitoring of budget expenditures and sharply limits opportunities for waste, administrative corruption, and the mismanagement of development loans.

Hossam Aiesh, an economic researcher, told Al-Thawra that fiscal governance has long been a missing pillar in Syria’s public sector. “The absence of these mechanisms discouraged investment and allowed financial monopolies to flourish,” he said. He added that regular financial reporting on inflation, unemployment, and revenue is indispensable for sound decision-making by both the state and private investors.

Economic Stability and Growth

The reform program is expected to generate several long-term benefits:

Deficit Control: Stronger debt management and more sustainable budgeting.
Investment Attraction: Transparent and audited financial systems draw investors seeking predictable environments.
Public Services: Efficient spending frees resources for healthcare, education, and infrastructure.

The new grant follows a $146 million allocation approved by the World Bank in June to improve electricity supply, signaling a deepening re-engagement between Syria and the international financial institution.

 

This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

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