World Bank to support developing countries with $100bn ‘if Middle East conflict persists’
World Bank on glass building. Mirrored sky and city modern facade. Global capital, business, finance, economy, banking and money concept 3D rendering illustration.
The World Bank has announced plans to provide up to $100 billion in support for developing countries should the war involving Iran, United States and Israel, as well as the economic fallout from the conflict persists.
In its latest ‘Global Economic Prospects’ report on Thursday, the World Bank said between $50 billion and $60 billion is immediately available through existing financing instruments, including $25 billion in pre-arranged funding, to ease the impact of the Middle East conflict.
“If the conflict and its economic fallout persist, the World Bank Group can scale up its support to $80–100 billion over 15 months,” the report said.
Also, Ajay Banga, president of the World Bank Group, said developing countries have faced a series of challenges over the last decade.
The impact differs by country, but the basic test is the same: protect people and preserve stability today, without giving up on growth and jobs tomorrow,” Banga said.
“In response to the current shock, we are providing liquidity where it is needed now and we are ready with additional financing, guarantees, and private-sector solutions if pressures deepen.
Our job is to help countries steady the ship, keep reforms moving, and emerge stronger on the other side.”
Ayhan Kose, deputy chief economist and director of the prospects group at the World Bank, said countries should use the crisis as an opportunity to strengthen economic reforms and attract private investment.
The conflict has taken a toll on global activity, but every crisis also brings an opportunity,” Kose said.
The economist said the situation should be used to strengthen “policy frameworks, invest in infrastructure, accelerate business-enabling reforms, and mobilise private capital to support job creation at scale”.
