Latest news:World Bank says Saudi Arabia and Qatar have paid off Syria’s outstanding debt : See more .

The World Bank says that the $15.5 million Syria owed it has been paid off by Saudi Arabia and Qatar, clearing Damascus to take out new loans.

Saudi Arabia and Qatar had announced plans last month to clear Syria’s outstanding debts, a move that Syria hailed as paving the way for recovery and reconstruction after a 14-year conflict that killed half a million people and caused wide destruction in the country.

The debt was owed to the World Bank’s International Development Association, a fund that provides zero- or low-interest loans and grants to the world’s poorest countries.

We are pleased that the clearance of Syria’s arrears will allow the World Bank Group to reengage with the country and address the development needs of the Syrian people,” the World Bank says in a statement.

It adds that “the first project in our reengagement with Syria is centered on access to electricity.”

Months after a lightning insurgency unseated former Syrian President Bashar Assad and ended the civil war that decimated much of the country’s infrastructure, severe electricity shortages continue to plague the country.

The United Nations estimates that 90% of Syrians live in poverty and state-supplied electricity comes as little as two hours every day. Millions of Syrians cannot afford to pay hefty fees for private generator services or install solar panels to supplement the meagre supply.

In March, Qatar began supplying Syria with natural gas through Jordan to ease the long hours of electricity cuts.

However, Western sanctions imposed on the country during the Assad dynasty’s rule have posed an obstacle to development and reconstruction projects.

Earlier this week, during a regional tour during which he met with Syrian President Ahmad al-Sharaa in Saudi Arabia, US President Donald Trump said he would move to lift the sanctions, clearing the way for investments in Syria.