As Iran war spirals, World Bank will give financial aid to some countries – National

The World Bank Group said on Thursday it will support client governments as they deal with challenges caused by the Middle East conflict, including increases in energy costs, by leveraging fast-disbursing policy financing instruments.

The development lender said in a statement it was ready to respond at scale with immediate financial relief, policy expertise and private sector support to preserve jobs and growth in affected countries.

“Our aim is to deliver immediate relief by leveraging our active portfolio, our crisis response toolkit, and pre-arranged financing facilities,” the World Bank Group said.

“We will transition progressively to fast-disbursing instruments anchored in sound policies to underpin recovery. Through our private sector arms, we will provide firms with essential liquidity, trade finance, and working capital,” the bank added.

The World Bank also used fast-disbursing policy development lending facilities to speed hundreds of billions of dollars in relief to developing countries affected by the pandemic in exchange for progress from governments on meeting certain reform targets.

The World Bank said it was keeping in direct contact with the most affected client countries.

“Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilizers and other critical agricultural inputs,” the World Bank said.