World Bank in talks with dozens of countries about crisis aid: Banga
This is to help them manage energy shocks and price increases triggered by Middle East war
The World Bank is engaging in discussions with around 30 to 40 countries regarding potential crisis aid to help them manage energy shocks and price increases caused by the Middle East war, according to its president Ajay Banga. Although the global economy has shown resilience due to significant investments in artificial intelligence and adjustments in oil supply and demand, developing countries are facing challenges from soaring diesel and fertiliser prices, along with the looming super El Niño weather phenomenon.
The Bank has made US$25 billion available as initial crisis funds, with an additional US$35 billion that countries could access by reallocating resources from approved World Bank projects. Banga anticipates that more countries will seek assistance in the coming months, possibly tapping the range of US$50 billion to US$60 billion.
Many developing nations are grappling with high energy prices, increased borrowing costs, and depleted fiscal reserves from Covid-19 pandemic measures and the recent Russia-Ukraine conflict.
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