World Bank to manage Middle East war fallout

The World Bank has announced that it will help countries cope with rising energy prices and disrupted supply chains. It plans to use rapidly available financial instruments to provide immediate support to governments and companies.

The institution said it is ready to deploy large-scale financial assistance, complemented by expert advice and private sector support, to preserve jobs and economic growth. It intends to provide firms with liquidity, trade finance and working capital.

The World Bank has already used similar tools during the pandemic, releasing hundreds of billions of dollars to developing countries in exchange for reform commitments.

At the same time, the organisation warns that disrupted shipping is driving up costs, with risks spilling over from the energy sector into other areas, including fertiliser and agricultural inputs. The Bank is in contact with the hardest-hit countries and is preparing further steps to mitigate the impact of the crisis.

(reuters, est)