The World Bank has announced plans to provide up to $100 billion in support for developing countries should the war involving Iran, United States, and Israel, as well as the economic fallout from the conflict, persist.
In its latest ‘Global Economic Prospects’ report on
Thursday, the World Bank said between $50 billion and $60 billion is
immediately available through existing financing instruments, including $25
billion in pre-arranged funding, to ease the impact of the Middle East
conflict.
“If the conflict and its economic fallout persist, the World
Bank Group can scale up its support to $80–100 billion over 15 months,” the
report said.
Also, Ajay Banga, president of the World Bank Group, said
developing countries have faced a series of challenges over the last decade.
“The impact differs by country, but the basic test is the
same: protect people and preserve stability today, without giving up on growth
and jobs tomorrow,” Banga said.
“In response to the current shock, we are providing
liquidity where it is needed now and we
are ready with additional financing, guarantees, and private-sector solutions
if pressures deepen.
“Our job is to help countries steady the ship, keep reforms
moving, and emerge stronger on the other side.”
Ayhan Kose, deputy chief economist and director of the
prospects group at the World Bank, said countries should use the crisis as an
opportunity to strengthen economic reforms and attract private investment.
“The conflict has taken a toll on global activity, but every
crisis also brings an opportunity,” Kose said.
The economist said the situation should be used to
strengthen “policy frameworks, invest in infrastructure, accelerate
business-enabling reforms, and mobilise private capital to support job creation
at scale”.
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