The World Bank has approved a $100 million grant to modernize and digitize Syria’s financial sector, with funding to strengthen banking infrastructure, expand digital payments and improve financial oversight.
The bank’s Board of Executive Directors approved the International Development Association grant on Aug. 6. The funding will be provided through the Syria Financial Sector Modernization Project.
The World Bank said Syria’s financial sector remained small, bank-centered and heavily dependent on cash after 14 years of conflict. Outdated digital payment infrastructure and weaknesses in supervision and financial stability have increased transaction costs, restricted access to financing and limited the country’s links to international financial channels.
The project will finance payment, financial market and credit infrastructure, as well as upgrades to the Central Bank of Syria’s core banking system, information technology and cybersecurity capabilities. It will also support banking reforms and strengthen the operational capacity of the central bank and the Financial Intelligence Unit.
The project aims to enable at least 15 million electronic retail payments annually and support at least 500,000 people and businesses, including 150,000 women, in actively using digital payments.
