Syria's removal from US terror sponsorship lists has opened channels for international payments and financial reintegration, developments that could reshape economic ties with Lebanon but depend on fixing Lebanon's banking crisis.
The United States removed Syria from its list of state sponsors of terrorism on 24 August 2026, a step that cleared the way for international payment networks to operate there. Visa and Mastercard began processing transactions in Syria on 27 August, marking the country's gradual return to formal international financial channels after years of sanctions and cash-dependent commerce.
Fransabank, a Lebanese bank, participated in Visa's first international card transaction in Syria in cooperation with Syrian firm Paymera. Mastercard worked with Qatar National Bank for parallel operations.
Syria faces one of the region's largest reconstruction bills. The World Bank estimates material damage to infrastructure and buildings between 2011 and 2024 at roughly 108 billion dollars. Full reconstruction costs are estimated at around 216 billion dollars, within a range of 140 to 345 billion dollars, equivalent to nearly ten times Syria's 2024 gross domestic product.
The reconstruction bill divides across sectors: 82 billion dollars for infrastructure, 75 billion dollars for residential buildings, and 59 billion dollars for non-residential structures. These figures place the banking sector in a critical role in channelling the financing needed for rebuilding.
Syrian commercial banks hold exposure to Lebanon exceeding 1.6 billion dollars, according to Syria's central bank, while total deposits in Syria's commercial banking sector amount to roughly 4.9 billion dollars. Lebanon's financial crisis has made these funds a major challenge for Syrian banks. Syria's central bank asked commercial banks in 2025 to address losses tied to Lebanon's crisis and submit restructuring plans.
As Syria's legal and financial environment improves, new mechanisms may emerge for handling these funds, though prospects depend on Lebanese banks' ability to meet obligations and restructure their sector.
Reopened Syrian ports and airports could reduce transit activity that passed through Lebanon during years of sanctions, though Lebanese companies in engineering, construction, consulting, transport and trade face a significant market in Syrian reconstruction spending.
Lebanese banks with historical ties to Syria may reassess investments or revive operations if Syria's financial environment continues improving. Many Syrian workers in Lebanon could benefit from expanded formal channels for money transfers, which would make remittances more regulated and transparent than informal networks currently allow.
