Twenty-seven countries have taken steps to quickly access the World Bank's emergency financing mechanisms since the start of the war against Iran, according to an internal document seen by Reuters.
This document reveals that these states are seeking to activate crisis mechanisms to quickly release funds from existing programs. However, the World Bank did not specify which countries were involved or the total amount of funding potentially mobilized.
According to the document, three countries have already obtained approval for new emergency mechanisms since the outbreak of the conflict in the Middle East on February 28, while the others are still finalizing their procedures.
The war and its consequences for global energy markets have severely disrupted international supply chains. Several developing countries are facing soaring fuel prices, fertilizer shortages, and increasing economic hardship.
Kenya and Iraq have confirmed they have requested urgent assistance from the World Bank. Nairobi is particularly concerned about rising fuel costs, while Baghdad is suffering a sharp decline in oil revenues due to disruptions in the global energy market.
The 27 countries concerned are among the 101 states that already have access to pre-established emergency financing mechanisms. Among them, 54 participate in the "Rapid Response Option," a mechanism allowing the use of up to 10% of the funds not yet disbursed in existing programs.
World Bank President Ajay Banga indicated last month that the institution's "crisis toolkit" could mobilize between $20 and $25 billion through emergency financing and rapid budget reallocations.
According to him, the World Bank could also redirect some of its projects in order to bring the total available envelope to around $60 billion over six months, or even up to $100 billion in the longer term if new measures were adopted.
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