Iraq and 26 other countries are requesting emergency funding from the World Bank.
Iraq and 26 other countries are requesting emergency funding from the World Bank.
2026-05-23
Shafaq News – Follow-up
Reuters revealed on Saturday that 27 countries, including Iraq, have begun activating emergency financing mechanisms from the World Bank since the outbreak of the war with Iran, with the aim of confronting the increasing economic repercussions resulting from the disruption of energy markets and global supply chains.
Reuters quoted an internal World Bank document stating that the World Bank’s Crisis Toolkit allows countries to quickly access liquidity by using unused funds within existing financing programs.
The document indicated that three countries have already agreed to use the new financing tools since the start of the war on February 28, while the rest of the countries continue to complete the procedures required to benefit from these mechanisms, without disclosing the names of those countries or the expected amount of financing.
Officials in Iraq and Kenya, according to Reuters, confirmed that their countries are seeking urgent financial support from the World Bank to address the effects of the war, including rising fuel prices in Kenya and a sharp decline in Iraqi oil revenues.
The document explained that Iraq and Kenya are among 101 countries with access to pre-financing tools, including 54 countries that have signed the “rapid response option,” which allows the use of up to 10% of unused funding within existing programs.
She explained that the war led to a significant increase in energy prices, caused tensions in global supply chains, and disrupted the arrival of bio-fertilizer shipments to developing countries, exacerbating economic pressures and inflation in a number of countries.
World Bank President Ajay Banga announced last month that the bank’s crisis tools would make available between $20 billion and $25 billion in emergency financing through rapid disbursement instruments and existing project balances.
shafaq.com
