World Bank in crisis-aid talks with 30 to 40 countries as Bangkok meetings open
As the IMF and World Bank annual meetings begin, World Bank chief Banga expects more aid requests. Up to $100 billion could be made available if the situation worsens.
Archive image · Photo: AgnosticPreachersKid / Wikimedia Commons, CC BY-SA 3.0 (cropped and resized)
The World Bank is in talks with 30 to 40 countries about potential crisis aid, its president Ajay Banga said. The money is meant to help them cope with energy shocks and price increases caused by the war in the Middle East. Few countries have drawn on the $25 billion the bank made available when the war began in late February. "There is pressure," Banga told Reuters, adding that he expects more countries to seek funds in the coming months. In total, $50 to $60 billion would be available if resources from already approved projects are redirected. If conditions worsen, the figure could rise to $100 billion – more than the $70 billion disbursed during the pandemic.
According to World Bank estimates, developing countries owe external creditors about $400 billion this year, a third of it in interest payments. Sharply higher diesel and fertiliser prices and a looming "super El Niño" add to the strain. Since Monday the IMF and World Bank have been meeting in Bangkok until 18 October – the first time in the Thai capital since 1991. IMF Managing Director Kristalina Georgieva warned that global public debt is nearing its highest level since the Second World War. On Tuesday the IMF presents its new World Economic Outlook. Central bank governor Dimitar Radev and a finance ministry official are expected to attend for Bulgaria.