World Bank in talks with dozens of countries about crisis aid, Banga says
SPY•The World Bank is discussing potential crisis aid with 30 to 40 countries facing energy shocks and price increases, President Ajay Banga said. The bank could make up to $100 billion available if conditions worsen, while developing countries owe external creditors about $400 billion in 2026.
1. Aid discussions underway
The World Bank is in dialogue with 30 to 40 countries about potential crisis aid to help manage energy shocks and price increases triggered by the war in the Middle East, President Ajay Banga said. Few countries had sought the initial $25 billion crisis fund, but Banga said more could tap an initial $50 billion to $60 billion as pressure mounts. Countries could also redirect resources from approved projects, and the bank could make as much as $100 billion available if the situation worsens.
2. Capital and debt
Developing countries owe external creditors about $400 billion in 2026, with interest payments making up one-third of the total, World Bank estimates show. The bank attracted a record $112 billion in private capital in the year ended June, up from $69 billion a year earlier, and invested $123 billion from its own resources. About $3 billion in private capital went to low-income countries, Banga said. The bank has 14 or 15 debt-for-development swaps in its pipeline, using guarantees to help countries replace higher-priced debt and direct the savings toward programs such as education and healthcare.
