Syrian Minister of Finance Mohammad Yisr Barniya announced that the government is examining the possibility of issuing sovereign bonds on international capital markets next year, alongside plans to establish a dedicated trust fund to support national recovery and reconstruction.
In an interview with Asharq Bloomberg on Saturday, Barniya confirmed that Damascus has begun preliminary discussions with international banks and financial institutions regarding a potential debt offering. He noted that the government seeks to gradually rebuild Syria’s credit profile and sovereign rating, although he declined to specify the expected size or maturity structure of the issuance.
Trust Fund for Recovery and Reconstruction
Barniya stated that the government is coordinating with the World Bank and several donor countries—including Norway, the Netherlands, Qatar and the United Kingdom—to create a multilateral trust fund aimed at financing early recovery and infrastructure rehabilitation.
The fund is intended to streamline donor contributions and mobilize capital for strategic infrastructure projects through standardized mechanisms that ensure governance, fiscal transparency and institutional integrity.
Sovereign Debt Settlement and IMF Engagement
On the sovereign debt front, Barniya reported measurable progress in settling arrears owed to bilateral creditors and multilateral institutions, laying the foundation for the resumption of international development financing.
He projected that Syria’s budget deficit for the current fiscal year will fall below 1.8 billion dollars, attributing the decline to government measures to rationalize public spending and strengthen revenue collection.
Barniya also anticipated the resumption of Article IV consultations with the International Monetary Fund during the first quarter of 2027. The upcoming review would mark the IMF’s first formal assessment of Syria’s economy in nearly sixteen years, focusing on macroeconomic conditions, structural reforms and medium‑term economic prospects.
Financial Sector Modernization and Compliance Discussions
Earlier on Wednesday, Barniya held a virtual meeting with senior executives from Bank of America and representatives from Kroll, the global financial advisory firm, to explore avenues for modernizing Syria’s financial sector and enhancing institutional compliance.
According to a statement from the Ministry of Finance, the discussions addressed potential areas of cooperation. Barniya reiterated Syria’s commitment to building a resilient and transparent banking system aligned with international standards for anti‑money laundering and counter‑terrorist financing.
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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