S\u00e3o Paulo \u2013 Syria\u2019s economy is showing signs of recovery and has prospects for improvement, according to a report released by the International Monetary Fund (IMF) after a team visit to the country from November 10 to 13, led by Ron van Rooden. According to Rooden, these signs are grounded in improving consumer and investor sentiment under Syria\u2019s new regime.<\/p>\n\n\n\n
\u201cThe authorities have been able to adopt a tight fiscal and monetary stance within the many constraints they face, with a view to ensuring economic and financial stability,\u201d Rooden said, also citing Syria\u2019s gradual reintegration into the regional and global economy with the lifting of sanctions and the return of more than one million refugees to the country as key drivers of the improved outlook.<\/p>\n\n\n\n
The IMF\u2019s discussions with the country\u2019s authorities focused on drafting the 2026 government budget, aiming to expand fiscal space to meet essential needs\u2014such as social programs supporting the most vulnerable\u2014while at the same time ensuring a budget with ambitious yet achievable targets for revenue and financing.<\/p>\n\n\n\n
The Fund says it will provide broad technical assistance to Syria to strengthen its fiscal framework, helping improve public finance management and revenue administration, finalize new tax laws, and develop a strategy to deal with existing debt and reinforce debt management.<\/p>\n\n\n\n
Regarding the new tax regime, the IMF says it is important that it be simple, competitive, and easy to administer, avoiding generous exemptions that could create room for arbitrage and tax evasion. The Fund also calls for good-governance standards to be applied and for the Ministry of Finance to assess and monitor potential contingent liabilities while the authorities restructure state-owned enterprises and seek major investment projects with the private sector.<\/p>\n\n\n\n
Another challenge the IMF is expected to help Syria address is the development of a monetary-policy framework that supports low and stable inflation. The Fund will provide assistance in drafting new financial-sector legislation and regulation, in rehabilitating the country\u2019s banking and payments systems, and in rebuilding the capacity of the local Central Bank so it can implement monetary policy and supervise the nation\u2019s financial system.<\/p>\n\n\n\n
Read more<\/em>: Translated by Guilherme Miranda<\/strong><\/p>\n
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