The World Bank is holding discussions with between 30 and 40 countries over possible emergency financial assistance to help them cope with rising energy costs, inflationary pressures and other economic challenges triggered by the ongoing conflict in the Middle East.
World Bank President Ajay Banga disclosed this in an interview with Reuters on Sunday, October 11, 2026, ahead of the annual meetings of the International Monetary Fund (IMF) and the World Bank.
According to Banga, although the global economy has demonstrated considerable resilience, developing countries are facing renewed pressure from rising diesel and fertiliser prices, higher borrowing costs and the possibility of an unusually strong El Niño weather phenomenon.
When the conflict began in late February, the World Bank made an initial $25 billion available through its crisis financing arrangements. However, relatively few countries have accessed the funds, partly because of adjustments in global oil supply and demand and the resilience of economic activity, supported in part by substantial investments in artificial intelligence.
Banga said the situation could change in the coming months as economic pressures intensify. The initial $25 billion could be supplemented by another $35 billion through the reallocation of resources from previously approved World Bank projects, bringing the potential funding available to between $50 billion and $60 billion.
He confirmed that the institution was already engaging with dozens of governments to assess their needs and determine the most appropriate forms of support.
DEVELOPING COUNTRIES FACE RISING DEBT BURDEN
Many developing economies are struggling with the combined effects of rising energy prices, high interest rates and limited government finances. Their fiscal positions remain under pressure following expenditure during the COVID-19 pandemic and the inflationary consequences of Russia’s invasion of Ukraine.
World Bank estimates indicate that developing countries owe external creditors approximately $400 billion in 2026, with interest payments accounting for about one-third of the total.
The growing debt burden leaves governments with less money to invest in essential public services, infrastructure and economic development.
Banga explained that several countries were more interested in restructuring existing development projects to meet urgent needs than in immediately accessing the Bank’s dedicated crisis financing facility.
However, he said the World Bank was prepared to expand its assistance if the situation deteriorated significantly. Its available financing could rise to as much as $100 billion, exceeding the approximately $70 billion disbursed during the COVID-19 pandemic.
WORLD BANK MOBILISES RECORD PRIVATE INVESTMENT
Beyond emergency financing, the World Bank is increasing its efforts to attract private investment into developing economies.
Banga said the institution mobilised a record $112 billion in private capital during the financial year ended in June 2026, compared with $69 billion in the preceding year. The latest figure is more than three times the amount recorded in 2022.
This investment was in addition to $123 billion provided from the Bank’s own resources, bringing the combined total to $235 billion.
The increased mobilisation of private capital is particularly important as several Western countries have reduced official bilateral development assistance.
Banga expects private investment to grow further through political risk guarantees, increased local-currency financing and regulatory reforms designed to make developing markets more attractive to foreign investors.
He also stressed the need to ensure that smaller and lower-income economies benefit more substantially from these investments.
According to the figures cited by Banga, upper-middle-income countries, including Argentina and India, accounted for approximately $50 billion in private capital, while lower-middle-income countries, including Bangladesh and Angola, attracted about $37 billion.
However, private capital flowing into low-income countries remained relatively limited at approximately $3 billion, highlighting the need for additional measures to support investment in vulnerable economies.
Regionally, Latin America and the Caribbean recorded $36.3 billion in private capital, followed by Africa with $22 billion, Europe and Central Asia with $21.3 billion, and South Asia with $19.2 billion.
Nigeria was among the ten leading recipient countries for private capital mobilised through the World Bank’s efforts, alongside Brazil, India, Turkey, Romania, Argentina, South Africa, Bangladesh, Mexico and Chile.
DEBT RESTRUCTURING AND DEVELOPMENT FINANCING
The World Bank is also working with the IMF to address the mounting debt challenges facing developing countries.
One approach involves debt-for-development swaps, which can help governments replace expensive existing debt with more favourable financing arrangements. The savings can then be directed towards priority areas such as education, healthcare, water and environmental protection.
Banga cited arrangements already established for Angola and Côte d’Ivoire, alongside a portfolio-based guarantee for Argentina.
He added that another 14 or 15 projects were in the pipeline, aimed at helping countries refinance higher-cost debt with more affordable borrowing supported by World Bank guarantees.
The institution is also exploring ways to strengthen domestic revenue collection and expand access to private financing for micro, small and medium-sized enterprises.
These initiatives are intended to help countries manage their debt obligations while preserving resources for essential services and long-term development.
GLOBAL ECONOMIC OUTLOOK
The World Bank’s discussions with dozens of countries come as policymakers prepare for the IMF and World Bank annual meetings, where the effects of the Middle East conflict, rising energy prices, inflation and debt sustainability are expected to feature prominently.
Although the global economy has shown resilience, the combination of geopolitical instability, expensive borrowing and higher costs for fuel and agricultural inputs continues to threaten developing economies.
For countries such as Nigeria, the availability of international development financing and private investment could provide opportunities to support infrastructure, businesses and essential public services. However, the extent of any benefit will depend on the financing arrangements adopted, the projects supported and how effectively the resources are deployed.
The World Bank’s current engagement with 30 to 40 countries signals growing concern about the economic consequences of the crisis, even as the institution maintains that it has substantial financial resources available should conditions worsen.
