As part of the Syria Earthquake Emergency Appeal, CHF 6 million was made available to the Syrian Arab Red Crescent (SARC) in December 2024 to support the continuation of planned response and recovery activities. However, due to the government transition and subsequent administrative and banking disruptions, SARC was unable to access these funds until May 2025. While formal access to the funds was restored at that time, significant liquidity constraints within the national banking system persisted throughout the remainder of 2025 and continue to affect transaction functionality in 2026. These constraints, including cash shortages, withdrawal limitations, and delayed interbank transfers, have required phased withdrawals and careful financial planning. Despite these constraints, implementation has progressed in line with operational priorities, with phased disbursement and careful financial management applied to mitigate delays. Financial and narrative reporting for these funds remains pending submission of the National Society’s reports, as SARC is operating under the Certified Reimbursement and Reporting Arrangement (CRRA), with reporting timelines managed in coordination with IFRC. In June 2025, the removal of certain international sanctions affecting Syria was formally however, the formal lifting was only signed and enacted on 18 December 2025. However, the practical operational impact of this announcement was not realized until November 2025, as financial institutions, suppliers, and international partners required time to adjust compliance procedures, due diligence processes, and banking channels. During this interim period, humanitarian implementation continued to face significant constraints, including delays in national procurement, hesitancy among suppliers and service providers, and limitations in cross-border financial transactions. The gradual operationalization of the sanctions easing from November 2025 onward has begun to improve procurement timelines and financial transfers; however, residual caution within the banking and commercial sectors continues to influence the pace of implementation and recovery activities.
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