The World Bank is rushing to inject emergency funds to mitigate the impact of the Iran-Iran conflict; 27 countries have requested assistance.

The Iran-Iran conflict is having a more severe impact on the global economy. The World Bank reports that 27 countries are urgently seeking emergency aid following disruptions to energy, supply chains, and fertilizer transportation.

May 23, 2569 The World Bank is expediting the opening of emergency assistance channels for countries to cope with the impact of the war with Iran. Following the conflict in the Middle East, ripple effects began to impact the global economy, affecting energy, supply chains, and the transportation of fertilizers to developing countries. Internal documents indicate that 27 countries have already begun implementing measures to urgently access emergency funding from existing World Bank programs.

Since the conflict erupted on February 28, three countries have already received approval for the new form of aid, while another 24 countries are still in the process of documentation and approval. However, the World Bank has not disclosed the list of countries or the total amount of funding that are in the process of applying for assistance and declined to comment on the matter.

The impact of the war and the disruption to global energy networks are severely pressuring international supply chains, including affecting the export of key fertilizers to developing countries. The governments of Kenya and Iraq have confirmed that they are seeking emergency financial assistance from the World Bank to mitigate the economic impact.

Kenya is facing soaring domestic fuel prices, while Iraq is being impacted by a significant drop in oil export revenues after maritime transport disruptions in some areas due to the conflict.

These 27 countries are part of a group of 101 countries with advance access to the World Bank's emergency aid fund, designed to allow governments rapid disbursement during crises. Of these, 54 countries participate in the Rapid Response Option, which allows governments to immediately utilize up to 10% of unspent project funds.

The accelerated use of such aid tools came after Ajay Banga, President of the World Bank, It was stated last month that... The World Bank's new crisis response toolkit could help countries access around US$20-25 billion in funding through advance aid and emergency disbursement programs. The bank also stated it can adjust its portfolio to raise up to an additional US$60 billion within six months.

meanwhile Kristalina Georgieva, Managing Director of the International Monetary Fund. It was estimated that... Approximately 12 countries may request short-term emergency assistance from the IMF, totaling around US$20,000-50,000 billion.

however Sources close to the matter indicate that the IMF has received formal requests from only a few countries so far, as many governments are choosing to monitor the situation closely. while Analyst I think that Many countries tend to choose the World Bank's tools over negotiating with the IMF because IMF bailout programs often come with stricter fiscal discipline and austerity measures.

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