IMF Staff Concludes Visit to Syria

Damascus, Syria – A staff team from the International Monetary Fund (IMF), led by Ron van Rooden, visited Damascus from February 15–19, 2026, to discuss the authorities' reform progress and priorities, as well as further technical assistance activities. At the conclusion of the mission, Mr. van Rooden issued the following statement:

"Syria's economy continues to show signs of recovery, with activity increasing at an accelerating pace as consumer and investor sentiment continues to improve, international sanctions against Syria are removed, and Syria re-integrates with the regional and global economy. Progress toward national reconciliation, the continuing return of refugees, increased electricity provision and rainfall, and several large new investment projects bode well for growth prospects for 2026 and beyond.

"Preliminary data indicate that the central government budget ended 2025 with a small surplus, with spending focused on meeting essential needs and improving wages and people's living standards. This was done by prudently containing spending to available resources, and with the Ministry of Finance refraining from central bank financing—a major improvement compared to previous years.

"The authorities have prepared a budget for 2026 that aims to substantially increase spending on health care and education, including wage increases, and on the rehabilitation of essential infrastructure. Revenue projections are ambitious but feasible. Nonetheless, the budget includes important safeguards in case revenues and financing were to fall short of expectations. The authorities recognize that any spending reprioritization needs to protect social spending, and that efforts need to continue to strengthen the social safety net to support the most vulnerable segments of the population. In parallel, efforts need to continue to improve the efficiency and transparency of public spending, supported also by the planned digitalization of government services by the Ministry of Finance. As the authorities pursue multiple large investment projects with the private sector, it is crucial that the Ministry of Finance plays a key role in assessing these projects and in containing contingent liabilities. Similarly, it remains important to improve the governance and operations of state-owned enterprises to enhance their efficiency and financial viability. For the coming years, strong international support remains needed to help alleviate poverty, including among returning refugees and internally displaced people. At the same time, the authorities' ability to mobilize external financing will depend on progress toward addressing Syria's legacy debts.

"The Central Bank of Syria has been able to maintain a tight monetary stance within the many constraints it faces. Together with the absence of central bank financing of the budget, this has resulted in a remarkable slowdown in inflation—to the low double digits by the end of 2025—and an appreciation of the exchange rate relative to 2024. With the introduction of the new currency well underway and building on the progress made, the focus will now need to be on empowering the central bank to ensure price and financial stability and ensuring its independence, developing an appropriate monetary policy framework, as well as on conducting a thorough assessment of banks' financial health and on the restructuring and rehabilitation of the banking system. This is needed to rebuild the public's trust in banks and for the banking system to be able to play its essential role in financial intermediation and facilitating payments, both domestically and internationally, and to allow for the effective implementation and transmission of monetary policy.

"The IMF will continue to support the authorities in their efforts to rehabilitate Syria's economy and improve the functioning of key economic institutions, building on the considerable progress they have made over the last year. As part of the IMF's engagement with Syria, an extensive technical assistance program was agreed for the period ahead. In the area of fiscal reforms, in support also of the Ministry of Finance's Strategic Transformation Plan 2026–2030, capacity building activities will focus on improving: (i) public financial management, including cash management, and budget preparation and execution; (ii) revenue mobilization, including tax policy and revenue administration; (iii) public debt management, including further support in developing a debt sustainability analysis; and (iv) natural resource taxation and management. In the area of financial sector reforms, and in support of the Central Bank of Syria Strategy 2025–2030, capacity building activities will focus on: (i) the preparation of new financial sector legislation and regulation; (ii) the rehabilitation of the banking and payments systems; (iii) strengthening banking supervision; and (iv) supporting the central bank in developing and implementing an appropriate monetary policy framework. Capacity building activities will also continue to focus on improving statistics—covering national accounts, price, balance of payments, government finance, and monetary statistics—not only to facilitate policy design and assessment, but also to help pave the way for the resumption of Article IV consultations with Syria. IMF staff will continue to work together with multilateral, regional, and bilateral donors to support the authorities' capacity building efforts.

"The staff team is grateful to the authorities for the transparent and constructive discussions, and for their warm hospitality during this mission. The team met with Minister of Finance Mohamad Yisr Barnieh, Governor of the Central Bank of Syria Abdulkader Husrieh, as well as other senior officials."