World Bank in crisis talks with up to 40 countries as Middle East war drives energy price surge

The World Bank is in active discussions with 30 to 40 countries about emergency aid to cushion the blow of energy shocks and price spikes set off by the war in the Middle East — and its president says the institution is prepared to deploy up to $100 billion if the situation deteriorates.

There is pressure, and so I think maybe over the coming months, more countries will come for some slice of that first $50 to $60 billion.— Ajay Banga, World Bank President

Banga made the remarks to Reuters on October 11, ahead of this week's annual meetings of the International Monetary Fund and World Bank. He said that despite the scale of the crisis talks, relatively few countries have yet drawn on the initial $25 billion the Bank made available when the Middle East conflict began in late February.

The reason, Banga said, is that the global economy has so far proven more resilient than feared — partly because of large AI-driven investments and adjustments in oil supply and demand. But that resilience has not reached the most vulnerable economies, where a sharp spike in diesel and fertilizer prices, elevated interest rates, and the looming threat of a super El Niño weather event are compounding pressures that were already severe.

Many developing countries entered this crisis with fiscal reserves already depleted by pandemic-era spending and the inflation surge that followed Russia's military operation in Ukraine. World Bank estimates show those countries collectively owe external creditors about $400 billion in 2026 alone — with interest payments accounting for one-third of that total.

Beyond the immediate $25 billion crisis window, countries can access an additional $35 billion by redirecting funds from already-approved World Bank projects, bringing the accessible pool to $50–60 billion. Banga said more countries have shown interest in that retooling option — restructuring existing projects — than in drawing directly on emergency liquidity. If conditions worsen significantly, the Bank could expand its response to as much as $100 billion, surpassing the $70 billion it disbursed during the pandemic.

We'll see, but we're ready. We're engaged. We're having conversations with a number of them, you know, 30 to 40 countries are in dialogue with us.— Ajay Banga, World Bank President

The Bank is also advancing 14 or 15 debt-for-development swaps and guarantees designed to help countries refinance debt taken on at higher interest rates. The World Bank and IMF are additionally collaborating on initiatives to address debt levels and boost domestic revenues in affected nations.

The annual IMF-World Bank meetings this week provide the backdrop for these conversations — a moment when finance ministers and central bank governors from across the developing world gather, and when the scale of the pressure on lower-income economies typically comes into sharpest focus. Whether the current wave of dialogue translates into formal aid requests in the coming months will be a key indicator of how much further the crisis has to run.

Why it matters — With developing countries carrying $400 billion in external debt due this year and energy costs still rising, the World Bank's next moves will determine whether dozens of governments can avoid fiscal crises that would cut public services and deepen poverty.

Reported by reuters.com, egyptian-gazette.com, ground.news, brusselsmorning.com