Damascus, April 23 (QNA) - Syrian Minister of Finance Mohammed Yasser Barnieh affirmed that cooperation with the Qatar Fund for Development (QFFD) in the project to assess the financial and banking sector represents an important strategic step in a qualitative transformation phase that the Syrian economy is witnessing, towards a model based on productivity and attracting investments, after years of stagnation and challenges imposed by the war.

In the context of a pivotal economic phase that Syria is going through, and in light of efforts to restructure the national economy and enhance the investment environment, the Syrian Minister of Finance spoke to Qatar News Agency (QNA) about the features of the economic transformation, the current challenges and prospects for international cooperation.

Barnieh emphasised that cooperation with the Qatar Fund for Development in the project to assess the financial and banking sector represents a very important strategic step, which falls within a qualitative transformation phase witnessed by the Syrian economy, which is moving towards a model based on productivity and attracting investments, after many years of stagnation and challenges imposed by the war.

He explained that the Syrian economy is moving from a rentier model based on central planning to an economy that relies on the leadership of the private sector and attracting investments, indicating that Qatari support constitutes a fundamental lever for economic reform projects, especially in the financial and banking sector, which is the cornerstone for rebuilding the national economy.

He added that Qatari investments, especially in the energy sector, are now directly contributing to supporting projects related to general economic policies, and are also strengthening efforts to reform the financial sector, enabling Syria to regain its ability to achieve economic recovery.

The minister addressed the structural challenges facing the financial sector, explaining that they include a shortage of capital and its erosion as a result of the decline in the value of the currency and the shrinking size of the economy, which has led to an almost complete disconnection from international financial markets, in addition to the decline in reinsurance relationships and the decrease in the number of correspondent banks to the lowest levels.

He pointed to a clear gap in communication with foreign capital and international investors, resulting from the absence of effective channels and mechanisms to attract and direct financing towards productive sectors, in addition to the weakness of the legislative and regulatory system and the need for a comprehensive update of laws and regulations to keep pace with modern developments in financial work.

He also pointed to the depletion of human resources as a result of the emigration of many specialized experts, which necessitates working to attract them again and qualify local personnel through intensive training programs, in addition to the weakness of the infrastructure and financial technologies, especially in light of the restrictions imposed by the sanctions on access to modern financial technology.

The minister affirmed that the challenges are not limited to the banking system or financial policies separately, but require a real integration between financial and monetary policies, supported by an effective governance system and anti-corruption measures, in addition to a comprehensive restructuring of the financial and banking sector, which will enhance its ability to restore balance and attract investments.

He stressed that achieving this integration is a prerequisite for moving towards a new phase and attracting local and international investors to contribute to the economic recovery process.

In a related context, he pointed out that institutions that experienced isolation and mismanagement suffered from weaknesses in these aspects, affirming that the Syrian government places strengthening governance and transparency at the heart of reform programs through improving disclosure levels and developing institutional frameworks.

Syrian Minister of Finance Mohammed Yasser Barnieh revealed to QNA that work is underway to establish a specialized academy for financial skills, along with plans to transform the accounting and auditing board into a governance, auditing, and financial professions council, to play a pivotal role in establishing a culture of integrity and promoting governance principles within financial institutions.

The minister explained that work is underway to conduct a comprehensive assessment of gaps in the financial structure, especially in public banks, which constitute the largest part of the banking sector, and to prepare a medium-term financial framework that links the macroeconomic situation and the state’s public finances.

He said that this framework aims to achieve a balanced general budget that combines ambition and fiscal discipline, focusing on stimulating economic growth while maintaining a limited and manageable deficit, and securing sustainable funding sources for the public treasury based on principles that achieve tangible economic returns and contribute to improving the standard of living of citizens.

He affirmed the existence of continuous communication with international financial institutions to benefit from technical expertise and capacity building, while welcoming greater contributions from donors and development partners to support reform programs, highlighting the efforts made by the Syrian Ministry of Foreign Affairs and Expatriates to mobilize international support in this regard.

Minister Barnieh also explained that cooperation with the World Bank and the International Monetary Fund (IMF) takes place on a near-weekly basis and includes multiple files related to public finance, economic policies, and statistics, praising the support provided by these institutions in terms of knowledge transfer, enhancing international credibility, and accelerating reforms.

He pointed out that the involvement of international institutions such as the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) represents a positive message that enhances investor confidence and contributes to attracting more investments to Syria, reiterating thanks to the brotherly and friendly countries, foremost among them the State of Qatar, for their support for Syria’s return to the international economic and financial system.

The minister affirmed that restoring investor confidence begins with the existence of a strong state capable of managing the economy efficiently, pointing out that the features of this confidence have begun to appear through the flow of investments in several sectors, with continuous work on developing laws and strengthening governance and economic policies in a way that creates an attractive environment for investment.

He added that the government is working to achieve comprehensive and sustainable economic growth that takes into account the social dimension and ensures the distribution of the fruits of development across the various governorates, with a focus on creating job opportunities and improving the conditions of low-income groups.

The minister affirmed that all development sectors in Syria are a priority, with special attention to the electricity, oil, gas, and communications sectors, in addition to the financial sector, insurance, financial markets, agriculture, health, education, and tourism, as well as investment in transport, communications, and shipping infrastructure.

He concluded his remarks to QNA by emphasizing that the government aspires to achieve accelerated economic growth that would allow the Syrian economy to double in size over the next five years, if the reform programs are successful, reiterating that Syria welcomes all investors who wish to take advantage of the available opportunities, affirming the government’s commitment to providing the necessary facilities, not crowding out the private sector, and working to achieve shared economic and developmental returns that benefit everyone. (QNA)