The World Bank is in discussions with between 30 and 40 countries about possible crisis assistance as governments face rising energy prices, higher borrowing costs and increasing pressure on public finances.
World Bank President Ajay Banga disclosed the discussions in an interview with Reuters published on October 11, ahead of the IMF and World Bank annual meetings.
The potential assistance is intended to help countries manage economic shocks linked to the Middle East conflict and its effects on global energy markets.
According to Reuters, the World Bank initially made $25 billion available through a crisis-financing arrangement earlier in the year. However, demand for the immediate funding was initially limited, partly because global economic conditions proved more resilient than expected and oil markets adjusted.
The situation has since become more challenging as diesel and fertiliser prices rise and developing countries face additional weather-related risks.
Rising costs create fresh pressure
Higher fuel prices can affect the cost of transporting food, operating factories and delivering essential services.
Fertiliser prices are also important because they influence agricultural production. When fertilisers become more expensive, farmers may reduce their use, increase selling prices or face lower profit margins.
These pressures can eventually affect food supplies and household spending.
Countries that already have limited fiscal resources may struggle to support households and businesses without increasing borrowing.
The World Bank has warned that developing countries face significant debt obligations. According to figures cited by Reuters, these countries owe external creditors about $400 billion in 2026, with interest payments accounting for roughly one-third of the total.
Such obligations can limit the money available for investment in infrastructure, healthcare and education.
World Bank considers different funding options
Banga said some countries were more interested in reallocating money from existing World Bank projects than immediately accessing the crisis fund.
Reallocating funds can allow governments to redirect financing towards urgent priorities without necessarily creating an entirely new borrowing arrangement.
The World Bank could also expand the amount of assistance available if conditions deteriorate. Banga told Reuters that funding could potentially reach $100 billion if needed.
The amount actually provided will depend on countries’ circumstances, their financing needs and the mechanisms available through the institution.
The bank has also been working to attract more private investment into developing economies.
Reuters reported that the institution attracted a record $112 billion in private capital during the year ended June 2026, compared with $69 billion in the previous year.
Private investment can help finance businesses, infrastructure and productive activities, although investors generally consider commercial risks before committing money.
Implications for developing countries
Access to crisis assistance could help governments manage temporary shocks while maintaining essential services.
For African countries, potential support may be relevant to fuel costs, agricultural inputs, infrastructure and other areas affected by international price movements.
However, financing alone cannot solve every economic challenge. Governments must also improve spending efficiency, strengthen public revenue and ensure that funds reach the areas where they are most needed.
Countries that borrow more must consider how future repayments will affect their budgets.
Outlook
The discussions highlight the difficult choices facing governments as the global economy adjusts to conflict-related shocks.
The World Bank’s readiness to expand assistance could provide an additional safety net, but the ultimate impact will depend on the severity of the crisis and the effectiveness of each country’s response.
