World Bank could provide up to $100 billion in funds for countries hit by war

The World Bank could mobilize $80 billion to $100 billion in funding over the next 15 months for countries hit hard by the war in the Middle East, eclipsing the $70 billion it provided during the COVID pandemic, the bank's president, Ajay Banga, said on Tuesday.



That would include $20 billion to $25 billion in coming months through a crisis response window that allows countries to withdraw up to 10% of funds earlier than planned from previously approved programs, with another $30 billion to $40 billion that could come from repurposing existing programs in about six months, he said.



Banga's comments, on the sidelines of the spring meetings of the International Monetary Fund and World Bank, reflect growing recognition of the huge impact the war is already having on global growth and inflation, with developing countries likely to be hit the hardest.



The IMF on Tuesday cut its global growth outlook due to war-driven energy price spikes, offering a range of scenarios that all include lower growth and higher inflation. Absent the conflict, the IMF said it would have upgraded its growth outlook by 0.1 percentage point to 3.4%.