The World Bank is preparing to allocate between $80 billion and $100 billion to countries severely impacted by the ongoing conflict in the Middle East. This funding is expected to be mobilized over the next 15 months.
According to Bank officials, the financial support will include $20 billion to $25 billion accessible through a crisis response window, which represents 10% of the total funds. An additional $30 billion to $40 billion could be provided by repurposing existing programs.
However, should the conflict persist beyond this timeframe, the Bank may need to tap into its balance sheet and reserves to secure the total funding target of $80 billion to $100 billion, as stated by the Bank’s leadership during an event organized by the Bretton Woods Committee.
In a related development, the International Monetary Fund recently warned that further escalation of the conflict in Iran could trigger a global recession.
Countries in the Middle East affected by the conflict include Kuwait, Bahrain, the UAE, Saudi Arabia, and Jordan. Iran has initiated strikes against American facilities in these nations, while also accusing them of enabling U.S. attacks against Tehran.
The World Bank is set to provide substantial financial assistance to Middle Eastern countries impacted by ongoing conflict, with a focus on rapid mobilization. The potential for further escalation in the region raises concerns about broader economic repercussions, as highlighted by the IMF.