Syrian Finance Minister: We Have Not Borrowed from the Central Bank and Are Considering Issuing Sukuk in 2026

Mohammed Yassar Barniyeh, the Finance Minister of the Syrian Transitional Government, stated that the government has not resorted to borrowing from the Central Bank of Syria during the current period. He confirmed that all previous loans have been fully repaid and that the upcoming general budget will not be financed through monetary deficit.

In an interview with Al Arabiya Business channel, Barniyeh explained that the ministry is working on reforming financial legislations and combating money laundering in compliance with the standards of the Financial Action Task Force (FATF). He noted that a FATF delegation is expected soon to review Syria’s classification with the aim of removing it from the grey list.

The minister added, “Regardless of the timing of the visit and classification, we are determined to reform legislation and financial systems to be more transparent and efficient,” stressing that the Central Bank of Syria must be independent and that the government supports it to maintain the stability of the Syrian pound.

Barniyeh indicated that budget revenues primarily depend on taxes and fees alongside revenues from certain exports such as phosphates. He pointed out that tax and customs revenues have seen a significant increase as a result of implementing reforms and combating corruption.

He explained that work is underway to prepare the 2026 budget, which he described as “carrying economic and social messages, not merely a budget of numbers for collection and expenditure.” He added that the 2025 budget may end with a slight surplus or a limited deficit that can be financed without economic pressure.

The minister mentioned that the Ministry of Finance is studying the issuance of local sovereign sukuk next year in a limited volume, aiming to create an indicator to help price Syrian financial assets. He added that any deficit could be financed through these issuances instead of financing from the Central Bank.

Barniyeh concluded by saying that the ministry is not currently considering issuing sukuk or bonds in international markets but may study this option at a later stage.