Syria taps World Bank, Oliver Wyman for financial sector reform

Syria enlists partners for financial sector reform: The Syrian government is soliciting support from consultancies and international lenders to reform its public finances and make its financial sector more investable.

#1- Management consultancy Oliver Wyman was tappedto conduct a comprehensive assessment of Syria’s financial sector, funded by the Qatar Fund for Development. The assessment is also getting backing from the US and World Bank.

#2- The World Bank is separately providing technical assistance to the Central Bank of Syria (CBS) on its management of foreign currency and gold reserves, Governor Abdulkader Husrieh told Sana earlier this week. This follows an ongoing USD 20 mn grant focused on helping Syria tighten public finance management and improve its revenue collection capacity.

In context: The updates come as Oliver Wyman is separately working on an institutional review of the CBS focused on compliance and transparency — two issues that are widely seen as the primary hurdles keeping Syria on the FATF grey list and preventing the return of global banks and capital flows. FATF is an intergovernmental body that sets global anti-money-laundering rules, and its gray list designation indicates weak compliance and higher risk for foreign banks.

Background: Qatari, Jordanian, and Turkish banks have all expressed interest in the Syrian banking sector, but we have yet to hear a word on any official entry. The latest chatter pointed to Turkish state-owned Ziraat Bank and private lender Aktifbank, with reports saying they were in advanced talks with Syrian regulators.

ALSO- Syria is saying it secured USD 200 mn financing from the World Bank for rail rehabilitation. The funding will go to the modernization of infrastructure and equipment, procure new locomotives, and train personnel, with financing priority given to links serving industrial areas, the director of the Land Transport Authority Ali Isber told Sana. The international lender is yet to make a formal announcement on the financing.