The International Monetary Fund concluded its first staff mission to Syria since 2009, as the country's new government seeks to rebuild its economy following the fall of Bashar Al Assad's regime in December.
Syria will need “substantial international assistance” to assist in recuperating its economy, meet humanitarian demands and rebuild infrastructure, the fund said on Tuesday, following the staff's visit from June 1 to 5. Estimates to rebuild Syria's economy – shattered by years of civil war – range from $250 billion to $500 billion.
“Syria faces enormous challenges following years of conflict that caused immense human suffering and reduced its economy to a fraction of its former size,” said Ron van Rooden, the IMF's mission chief to Syria.
The World Bank previously estimated Syria's economy had contracted by 60 per cent since 2011, with the UN reporting more than six million Syrian refugees now live in neighbouring countries.
“There is great urgency to address these challenges and achieve a sustainable economic recovery, including to absorb the increasing number of returning refugees,” Mr van Rooden said.
The IMF said its discussions with Syrian officials were centred on near-term policy priorities including adopting a budget for the remainder of this year and ensuring assistance is provided to the most vulnerable members of the population.
They also discussed the need for improving the tax and customs regime, strengthen public financial management, ensure price stability and rehabilitate the payment and banking systems.
Additional near-term goals include improving investment climate and enhancing data collection.
“The authorities will need strong international support for their efforts,” Mr van Rooden said.
“This includes financial support at highly concessional terms … and extensive capacity development assistance to strengthen economic institutions and upgrade outdated technologies and systems.”
Syria has been gradually reintegrated into the global economy since its interim government took hold in December, with Gulf nations and other international partners moving to support its recovery.
US President Donald Trump's administration began taking steps to ease US sanctions on Syria last month following his visit to the Gulf from May 13 to 16. Those efforts include authorising transactions involving Syrian President Ahmad Al Shara's government, the central bank and state-owned enterprises.
The EU also announced it would lift all economic sanctions on Syria to support its economic recovery.
Saudi Arabia and Qatar also paid off Syria's arrears to the World Bank, clearing another crucial hurdle to receive economic assistance.
Meanwhile, it has received major financial investments from the Gulf including a $7 billion energy infrastructure deal supported by Qatar's UCC Holding, a $6.5 billion aid pledge from international partners and an $800 million port agreement with the UAE's DP World.
Syria is also expected to be fully reconnected to the SWIFT international payment system “in a matter of weeks”, Central Bank of Syria's governor Abdulkader Husrieh, told the Financial Times on Monday.
Syrian officials had attended a high-level round-table hosted by the IMF, World Bank and Saudi Arabia's Finance Minister Mohammed Al Jadaan on the sidelines of the spring meetings in April to discuss the challenges of the country's new government.
IMF managing director Kristalina Georgieva said at the time the fund was focused on rebuilding credible data capability, as well as the country's central bank and its capacity to create revenue.
