Dozens of Nations Activate Crisis Funding Mechanisms
Twenty-seven countries have moved to establish crisis financing instruments since the Iran conflict began, according to an internal World Bank document viewed by Reuters, reflecting growing concerns over economic disruptions and financial uncertainty.
The document stated that countries sought mechanisms allowing rapid access to existing World Bank funding programmes during emergencies. However, it did not identify the countries involved or disclose the total amount of financing potentially requested.
According to the report, three countries formally approved new crisis instruments after the United States and Israel launched military operations against Iran on February 28. Meanwhile, the remaining countries continued completing required procedures.
The conflict and resulting disruptions to global energy markets have affected international supply chains and created additional pressure on developing economies.
Furthermore, interruptions involving trade routes and commodity movements have reportedly complicated access to critical resources, including fertiliser shipments required by many countries.
Officials in Kenya and Iraq have already confirmed efforts to secure rapid financial support from the World Bank to address economic consequences linked to the crisis.
Governments Remain Cautious While Monitoring Economic Conditions
The World Bank document also indicated that the 27 countries formed part of a larger group of 101 nations already eligible for pre-arranged emergency financing programmes.
Additionally, 54 countries had enrolled in the Rapid Response Option, which permits access to up to 10% of undisbursed financing during crises.
Earlier, World Bank President Ajay Banga estimated that existing emergency mechanisms could unlock between $20 billion and $25 billion quickly, while broader adjustments might raise available funding to approximately $100 billion over time.
Meanwhile, International Monetary Fund Managing Director Kristalina Georgieva previously suggested several countries might seek emergency assistance.
However, reports indicated that only a limited number of formal requests had emerged.
Analysts suggested many governments remained cautious and preferred observing economic developments before committing to larger financial arrangements.
