A New Debt Framework
Syria's Ministry of Finance is preparing a draft strategic plan to issue government debt instruments for the first time, including treasury bills, treasury bonds, and sovereign sukuk. Finance Minister Muhammad Yasir Barniyah reviewed the plan with the ministry's Securities and Sovereign Sukuk Committee, according to a statement issued on 13 July 2026.
The plan sets out a framework and timetable for bringing the instruments to market, part of a broader effort to give the state formal channels for borrowing from domestic investors.
Financing Without Inflation
A central goal is to secure non-inflationary sources of financing for the state budget. The 2026 budget identified sukuk issuance as a primary funding source for its estimated deficit, offering an alternative to monetary expansion.
Officials framed the instruments as public goods that benefit the national economy, with the aim of covering current and future obligations while keeping the deficit at manageable levels.
Tools for the Central Bank
The framework is designed to let the Central Bank actively manage liquidity and conduct open market operations, developed tools it currently lacks. A functioning government securities market would give policymakers a lever to absorb or inject cash as conditions change.
It would also establish a benchmark index for pricing financial assets, allowing banks and financial institutions to price their services in line with underlying risk.
Building a Yield Curve
The minister described a gradual expansion of issuances with progressively longer maturities, intended to build a benchmark yield index for government securities over time.
He stressed that the plan would be completed through consultation with local stakeholders, particularly the Central Bank, and aligned with current liquidity conditions and the state's financing needs.
Anchoring Financial Sustainability
The minister linked the initiative to financial sustainability, which he defined as the state's capacity to finance its current and future obligations responsibly while keeping deficits at manageable levels.
The instruments are meant to give the treasury a predictable, market-based way to cover spending, and, through regular issuances, to create reference points that lenders and investors can use across the wider financial system.