World Bank Approves $100 Million Grant to Modernise Syria's Financial Sector

Grant Details and Project Scope

The World Bank's Board of Executive Directors approved a $100 million grant from the International Development Association (IDA) to finance the Syria Financial Sector Modernisation Project. The project aims to build a modern, secure, digitally based financial system for Syria.

Funding will cover the modernisation of financial market infrastructure and retail payment systems, the development of a credit information system, and the upgrade of the core banking system of the Central Bank of Syria, alongside strengthening the country's technological infrastructure and cybersecurity capabilities.

Quantitative Targets

The project sets a target of at least 15 million retail electronic payment transactions per year and aims to attract 500,000 active users and businesses, including 150,000 women. These targets are designed to reduce the economy's heavy reliance on cash and to broaden access to financial services for individuals and companies.

Banking Sector Assessment and Risk Mitigation

The grant also funds independent asset quality reviews of both public and private banks, intended to assess the condition of the entire banking sector, identify the volume of non-performing loans, and map risks on bank balance sheets. This assessment is a prerequisite for any future sector restructuring or capital injection.

The project will additionally support the adoption of risk-based supervision and modern supervisory technology, the development of anti-money laundering and counter-terrorism financing systems, and the provision of analytical tools, hardware, and institutional training to the Central Bank of Syria and its Financial Intelligence Unit.

Resumption of International Support After 14 Years

Syria regained eligibility for IDA financing in May 2025, after Saudi Arabia and Qatar settled outstanding arrears owed to the World Bank totalling approximately $15.5 million, ending a 14-year suspension of funding.

In March 2025, the World Bank had already approved a separate grant of $20 million to improve public financial management in Syria, covering budget preparation, expenditure oversight, transparency, accountability, and the digitalisation of selected government processes.

Economic Context

The World Bank describes Syria's financial sector as small, bank-centric, and heavily dependent on cash transactions, with digital payment infrastructure that is outdated and financial oversight systems that carry significant vulnerabilities. The Bank estimated Syria's total debt at approximately $27 billion at end-2024, equivalent to 128 percent of GDP.