The World Bank is in discussions with between 30 and 40 countries about potential emergency financial assistance as rising energy and fertiliser prices, high borrowing costs and climate risks intensify economic pressures on developing nations.
World Bank President Ajay Banga told Reuters that the institution was prepared to provide support as countries grapple with the economic fallout of the ongoing Middle East conflict and growing financial vulnerabilities.
Billions Available for Emergency Support
The World Bank initially made $25 billion in crisis financing available when the conflict began in late February. However, relatively few countries have accessed the funds so far, partly because the global economy has proved more resilient than initially expected.
Banga said countries could potentially access between $50 billion and $60 billion through the initial crisis financing and the reallocation of approximately $35 billion from existing, approved World Bank projects.
If economic conditions deteriorate further, the institution could mobilise as much as $100 billion in crisis funding, exceeding the more than $70 billion it disbursed during the COVID-19 pandemic.
Developing Countries Face Mounting Debt
Rising diesel and fertiliser prices are placing additional pressure on developing economies, many of which are still recovering from the financial consequences of the COVID-19 pandemic and subsequent inflationary shocks.
High global interest rates have also increased borrowing costs, leaving governments with fewer resources to fund essential services and development programmes.
According to World Bank estimates, developing countries owe external creditors approximately $400 billion in 2026, with interest payments accounting for around one-third of that amount.
The potential impact of a strong El Niño weather phenomenon is adding to concerns about food security, agricultural production and the wider economic outlook.
World Bank Seeks to Mobilise Private Investment
Beyond emergency assistance, the World Bank is working to attract more private investment to support economic development, particularly in countries that struggle to access international capital.
Banga said the Bank mobilised a record $112 billion in private capital during the financial year ending in June, alongside $123 billion from its own resources.
The institution is also working with the International Monetary Fund (IMF) on initiatives to ease debt pressures, including debt-for-development swaps and guarantees that could help countries replace expensive existing loans with more favourable financing.
Global Finance Leaders to Discuss Economic Risks
The latest discussions come ahead of the IMF and World Bank annual meetings in Bangkok, Thailand, scheduled for October 12–18, where finance officials are expected to address global economic uncertainty, debt sustainability and the effects of geopolitical conflict.
The talks with dozens of countries underscore growing concerns that energy market disruptions, rising debt and climate-related threats could deepen financial difficulties across developing economies.
The World Bank says it remains ready to respond as governments assess their financing needs and determine how best to protect their economies from further shocks.
________________________________________________________________________________________________________________
