The World Bank is in discussions with 30 to 40 countries about potential emergency financial assistance as developing economies face mounting pressure from rising energy prices, higher fertilizer costs, debt obligations and global economic uncertainty, World Bank President Ajay Banga has said.
The discussions come as governments struggle to manage the economic consequences of the conflict in the Middle East and disruptions to global energy markets. The crisis has increased financial pressure on countries that depend heavily on imported fuel and agricultural inputs, raising concerns about inflation, food security and economic growth.
According to a report by Reuters published on Sunday, Banga said that although the World Bank had established an initial crisis-response funding facility of $25 billion, only a small number of countries had accessed the available support so far. The bank is examining how its existing financial instruments can help governments respond quickly to the developing situation.
Rising energy and fertilizer costs increase pressure
Higher energy prices have emerged as a major concern for developing economies. Countries that rely on imported oil and other energy supplies are particularly exposed to international price fluctuations. Rising fuel costs can increase transportation expenses, raise the cost of electricity generation and push up prices across the wider economy.
The effects can extend beyond the energy sector. Higher transportation and production costs may increase the prices of food, manufactured goods and essential services, placing additional pressure on households and businesses.
Fertilizer prices are another significant concern. Farmers depend on affordable agricultural inputs to maintain crop production, while many developing countries rely on international markets to meet domestic fertilizer demand. Disruptions to supplies or prolonged price increases can raise farming costs and potentially affect food availability.
For governments already dealing with limited budgets, these pressures create difficult policy choices. Authorities may need to consider temporary support for vulnerable households, assistance to businesses or measures to protect essential public services while maintaining control over public spending.
World Bank examines crisis-response options
The World Bank's crisis-response framework is intended to help eligible countries obtain financial resources more quickly when unexpected economic shocks occur. Rather than relying exclusively on entirely new lending arrangements, the institution can use existing programmes and financing mechanisms to respond to urgent needs.
Banga's latest remarks indicate that the bank is engaging with a broad group of governments to assess their circumstances and determine whether emergency support may be required.
However, discussions do not necessarily mean that all the countries involved have formally applied for assistance or will ultimately receive funding. The scale, timing and conditions of any support will depend on individual country requirements and the financial instruments available.
The bank may also consider adjustments to existing development programmes to make resources available for immediate priorities. Such an approach can help governments respond to urgent problems without waiting for every stage of a new financing process to be completed.
Debt burdens complicate the situation
The need for emergency assistance comes at a time when many developing countries are facing substantial external debt obligations.
Governments that borrow internationally must manage interest payments and repayments alongside spending on healthcare, education, infrastructure and social protection. When borrowing costs rise, refinancing existing debt can become more expensive, leaving less money available for development priorities.
Reuters reported that developing countries collectively owe an estimated $400 billion to external creditors in 2026. This burden adds to the challenge of responding to new economic shocks, particularly for countries with limited fiscal reserves.
Higher energy prices can make the situation more difficult by increasing import bills and placing pressure on national currencies. In countries where fuel and food are important components of household spending, rising prices can also intensify public demands for government intervention.
Emergency financing from international institutions can help bridge temporary funding gaps. Nevertheless, loans may add to future repayment obligations, making the terms of assistance and the long-term sustainability of public finances important considerations.
Climate risks add another layer of uncertainty
Economic pressures are also being compounded by concerns about a possible strong El Niño climate pattern.
El Niño can influence rainfall and temperatures in different parts of the world, increasing the risk of droughts, floods and disruptions to agricultural production. The effects vary by region, but severe weather can damage crops, affect water availability and increase the cost of food.
For countries already dealing with expensive fertilizer, fuel and imported food, climate-related disruptions could create additional financial difficulties.
Governments may need to allocate resources to emergency food assistance, agricultural support and disaster response while continuing to meet existing debt obligations. This combination of risks makes timely access to financing particularly important for vulnerable economies.
The World Bank's engagement with dozens of countries reflects the need to assess several overlapping challenges rather than treating the current economic disruption as an isolated problem.
Countries may prefer to adjust existing projects
Banga has also highlighted a trend in which governments are seeking to adapt existing development projects instead of immediately requesting entirely new financing.
Reallocating resources within approved programmes may allow countries to address urgent priorities more quickly. Depending on the terms of their existing arrangements, governments may be able to redirect some available funding towards immediate economic needs.
However, changes to development programmes can involve trade-offs. Money redirected towards short-term crisis management may no longer be available for its original purpose, potentially affecting infrastructure projects or other long-term development objectives.
The challenge for policymakers is to balance immediate economic stabilization with continued investment in sustainable growth, employment and essential services.
Private investment remains important
Alongside emergency lending, the World Bank is seeking to mobilize more private-sector investment to support development.
According to Reuters, the institution mobilized a record $112 billion in private capital during the previous year, in addition to $123 billion from its own resources.
Private investment can help finance businesses, infrastructure and employment opportunities, particularly where public budgets cannot meet all development needs. However, investors may become more cautious when conflicts, inflation, currency volatility or debt risks increase uncertainty.
Expanding access to finance for micro, small and medium-sized businesses is another area of importance. Smaller enterprises often play a major role in employment but may have limited access to affordable credit, especially during periods of economic instability.
The bank's broader approach therefore combines crisis financing with efforts to encourage investment and strengthen economic resilience.
Upcoming international meetings to address global risks
The latest discussions come ahead of the International Monetary Fund and World Bank annual meetings scheduled to take place in Bangkok, Thailand, from October 12 to 18, 2026. The meetings are expected to bring together finance ministers, central bank governors, development officials and other policymakers to discuss global economic challenges.
Rising debt, energy-market disruption, inflation and the financial needs of developing countries are likely to feature prominently in the discussions.
For governments seeking assistance, the immediate priority is to understand how much financing may be available, how quickly it can be delivered and what conditions may apply.
The World Bank's engagement with 30 to 40 countries suggests that demand for crisis-response planning remains broad. However, the eventual scale of financial assistance will depend on the severity of economic pressures and the decisions taken by individual governments and the institution.
As countries assess their options, the central challenge will be to address immediate financial pressures without undermining longer-term development goals. The effectiveness of the response will depend not only on the availability of funds but also on how efficiently they reach the economies and communities most affected.
Source: Reuters, October 11, 2026.
Tags
World Bank, Ajay Banga, crisis aid, emergency financing, developing countries, global economy, Middle East conflict, energy prices, fertilizer costs, external debt, economic crisis, climate risks, El Niño, IMF, international finance, Bangkok annual meetings, private investment, financial assistance.
