The World Bank Group said it will support client governments facing economic challenges linked to the Middle East conflict, including rising energy costs, by leveraging fast-disbursing policy financing instruments. Moreover, the institution said it stands ready to respond at scale with immediate financial relief, policy expertise, and private sector support to help preserve jobs and growth.
Fast-disbursing financing to address immediate pressures
The development lender said it aims to provide rapid assistance through its existing portfolio and crisis response toolkit. Additionally, it plans to use pre-arranged financing facilities to deliver immediate relief to affected countries.
“Our aim is to deliver immediate relief by leveraging our active portfolio, our crisis response toolkit, and pre-arranged financing facilities,” the World Bank Group said.
Furthermore, the institution said it will gradually shift toward fast-disbursing instruments tied to policy reforms to support longer-term recovery. “We will transition progressively to fast-disbursing instruments anchored in sound policies to underpin recovery. Through our private sector arms, we will provide firms with essential liquidity, trade finance, and working capital,” the bank added.
Supply chain disruptions raise broader cost risks
The World Bank said it remains in direct contact with the most affected client countries. Additionally, it warned that shipping route disruptions are increasing costs and widening supply risks across sectors.
“Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilizers and other critical agricultural inputs,” the World Bank said.
Moreover, the institution pointed to its previous use of fast-disbursing policy development lending during the pandemic. As a result, it highlighted that such tools can accelerate large-scale relief while encouraging progress on reform targets.
