World Bank in talks with 40 countries over economic impacts of Middle East war
The World Bank is conducting crisis financing talks with nearly 40 countries against the energy and debt crisis caused by the war. An initial 25 billion dollars has been allocated.
Due to the pressure of the war in the Middle East on energy costs and borrowing, the World Bank is holding discussions with 30 to 40 countries for crisis financing. While an initial resource of 25 billion dollars has been prepared, this amount could rise to 100 billion dollars depending on conditions.
Crisis Financing and Resource Capacity
The pressure of the war in the Middle East on energy prices and borrowing costs is increasing the financing needs of developing countries. The World Bank is holding talks with 30 to 40 countries to mitigate the economic impacts.
Rerouting of Project Resources
Instead of taking out new direct loans, some countries are redirecting resources from previously approved World Bank projects to their current needs. This situation increases the total capacity in the initial phase.
Pressure on Energy and Agriculture Costs
Increases in diesel and fertilizer prices are raising production costs. Furthermore, it is stated that a potential El Niño weather event could further deepen the economic problems.
External Debt Payments and Burdens
Total external debt payments of developing countries in 2026 amount to approximately 400 billion dollars. High borrowing costs are restricting social and public expenditures.
Turkey's Private Capital Financing
Turkey ranked third globally by attracting over 21 billion dollars in private capital with World Bank support during the 2022-2026 period.