World Bank Talks with 30-40 Nations on Emergency Financing Amid Middle-East Energy Shock

The World Bank is in active dialogue with roughly 30 to 40 developing countries that are confronting higher diesel and fertilizer prices, tighter credit conditions and the looming “super-El Niño” weather pattern. The pressure stems from the war in the Middle East that began in late February, which triggered sharp energy-price spikes and added to debt burdens already inflated by pandemic-era spending and the inflation surge after Russia’s invasion of Ukraine.

World Bank in Crisis Aid Talks With Up to 40 Nations as War Strains Developing Economies — BigGo Finance

Banga said the institution could expand the envelope to as much as US $100 billion if conditions worsen, surpassing the US $70 billion disbursed during the COVID-19 pandemic.

World Bank in Crisis Aid Talks With Up to 40 Nations as War Strains Developing Economies — BigGo Finance

Private-capital inflows hit a record US $112 billion for the year ended June, up from US $69 billion the prior year and more than triple the 2022 total. Combined with US $123 billion of the Bank’s own resources, total financing reached US $235 billion. Upper-middle-income nations such as Argentina and India accounted for US $50 billion of private capital, while lower-middle-income countries like Bangladesh and Angola drew US $37 billion. Low-income nations received roughly US $3 billion, a figure Banga said still needs scaling.

World Bank in talks with dozens of countries about crisis aid: Banga World Bank in Crisis Aid Talks With Up to 40 Nations as War Strains Developing Economies — BigGo Finance

World Bank President Ajay Banga told Reuters that the global economy’s resilience—bolstered by artificial-intelligence investments and oil-supply adjustments—has so far limited uptake of the original crisis facility. Banga also highlighted ongoing collaboration with the International Monetary Fund to address high debt levels through initiatives such as debt-for-development swaps and portfolio-based guarantees.

World Bank in talks with dozens of countries about crisis aid: Banga

• “There is pressure, and so I think maybe over the coming months, more countries will come for some slice of that first US$50 billion to US$60 billion,” — Ajay Banga, world bank president

World Bank in talks with dozens of countries about crisis aid: Banga

• “There is no one answer that fits when the world has these kinds of issues. What you need to do is figure out how to cut your coat to suit your cloth,” — Ajay Banga, world bank president

World Bank in talks with dozens of countries about crisis aid: Banga