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Post Reply: 27 Countries Request Urgent World Bank Aid as Iran Conflict Triggers Economic Turmoil

<blockquote><div class="quotetitle">Quote from <a class="profile-link highlight-moderator" href="https://lawguide.co.ke/understanding-law/legal-forum/profile/lawyer/">Lawyer</a> on May 25, 2026, 6:12 am</div><div id="pl-9050" class="panel-layout">
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<p dir="auto">Twenty seven countries have applied for emergency funding from the World Bank to address severe economic disruptions caused by the ongoing war involving Iran. The conflict, which began on February 28, 2026, has significantly affected global energy markets and supply chains, leading to increased fuel prices, higher transportation and production costs, and added strain on the fiscal stability of many developing nations.</p>
<p dir="auto">According to internal documents, these governments have activated pre arranged crisis financing tools that enable quick access to World Bank resources during emergencies. This approach helps countries respond rapidly to economic shocks without undergoing lengthy standard approval procedures.</p>
<p dir="auto">While the specific names of all requesting countries and the exact total amount sought remain undisclosed, officials from Kenya and Iraq have publicly confirmed their pursuit of this rapid financial assistance. Kenya faces challenges from sharply rising fuel prices and elevated import costs due to global energy market instability. Iraq is dealing with reduced oil revenues and broader regional instability that has impacted its exports and trade activities.</p>
<p dir="auto">Out of 101 countries with access to various pre arranged financing mechanisms, 54 participate in the Rapid Response Option. This option permits countries to utilize up to 10 percent of their undisbursed financing during crises. Three countries have already secured approval for new financing instruments since the conflict started, while the remaining applicants continue navigating administrative and approval steps.</p>
<p dir="auto">World Bank President Ajay Banga previously highlighted the institution's crisis response capabilities. He noted that pre arranged contingent financing, existing project balances, and fast disbursing instruments could provide between 20 billion and 25 billion US dollars in the near term. By reallocating parts of its portfolio, the total support could reach 60 billion US dollars within six months. Longer term adjustments might expand available resources to approximately 100 billion US dollars.</p>
<p dir="auto">Multilateral development banks, including the World Bank, have substantially scaled up their financing activities. These lenders increased support by 124 percent over the past decade leading to 2024, demonstrating a growing capacity to address global economic challenges.</p>
<p dir="auto">The Iran war continues to exert pressure on fragile economies through volatile commodity prices and interrupted trade routes. Many affected nations rely on these emergency funds to stabilize their fiscal positions, protect essential services, and mitigate the broader impacts of higher energy and logistics expenses on businesses and households.</p>
<p dir="auto">This coordinated response underscores the interconnected nature of global economies and the critical role of multilateral institutions in providing timely support during geopolitical crises.</p>

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Post Reply: 27 Countries Request Urgent World Bank Aid as Iran Conflict Triggers Economic Turmoil

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