WASHINGTON – The World Bank announced plans to raise between $80 billion and $100 billion over the next 15 months to support countries severely affected by the ongoing Middle East conflict, World Bank President Ajay Banga said on Wednesday.
Banga said the proposed mobilisation would exceed the $70 billion response package implemented during the Covid-19 pandemic, reflecting the scale of current global economic disruptions.
He explained that the assistance would be released in phases. An initial $20 billion to $25 billion is expected in the coming months through a crisis-response mechanism that allows countries to access up to 10% of previously approved financing ahead of schedule. A further $30 billion to $40 billion could be made available within six months by restructuring and reprioritising existing lending programmes.
Speaking during the Spring Meetings of the International Monetary Fund and the World Bank, Banga said the conflict is already weighing on global economic growth, with developing and emerging economies expected to be the most affected.
He noted that rising energy prices and supply chain pressures linked to the conflict are contributing to inflationary risks and weaker global growth prospects.
The International Monetary Fund has already revised its global growth outlook downward, citing increased energy costs resulting from the conflict and warning of broader economic uncertainty.
Banga further stated that if the situation worsens, the World Bank could use additional balance sheet capacity and unused lending headroom to expand support beyond the $80–100 billion range, alongside its regular financing operations.
He emphasised the need for a flexible and phased response framework that can be scaled according to evolving global conditions, ensuring adequate financial support for affected countries.
Following meetings with officials from the International Energy Agency and IMF Managing Director Kristalina Georgieva, Banga said global energy markets are likely to remain unstable even after the conflict ends, particularly if infrastructure damage persists.
Georgieva said the global economy could recover relatively quickly if the conflict is resolved in the near term, but warned that a prolonged war could significantly weaken growth and prolong inflationary pressures. She added that the IMF is actively assessing financing requirements in affected countries amid rising energy costs and supply chain disruptions.
Both institutions stressed the importance of targeted and temporary policy responses to manage higher energy prices, warning that broad-based subsidies could further fuel inflation.
