The internal report did not disclose which countries are involved or the total funding being requested. The World Bank has declined to comment on the matter.
According to the document, “three countries had approved new instruments since the Middle East conflict began on February 28 while the others were still completing the process,” suggesting that most applications are still moving through administrative and technical stages rather than immediate disbursement.
Energy Shock and Supply Chain Strain Deepen Global Pressure
The conflict has already disrupted global energy flows, sending ripple effects through fuel markets and increasing costs for import-dependent economies. One of the most immediate consequences has been the strain on agricultural supply chains, particularly fertilizer shipments bound for developing countries.
These disruptions are adding pressure to economies already grappling with inflation, debt burdens, and limited fiscal space, making emergency financing tools increasingly attractive.
Kenya and Iraq have publicly acknowledged that they are seeking rapid financial assistance. Kenya is facing surging fuel prices that are feeding inflation, while Iraq is dealing with a steep decline in oil revenue, tightening its budget position.
World Bank’s Expanding Crisis Financing Toolkit
The 27 countries seeking activation are part of a broader group of 101 nations that have access to pre-arranged crisis financing instruments. Among them, 54 countries are enrolled in the Rapid Response Option, which allows governments to redirect “up to 10% of their undisbursed financing” in times of emergency.
World Bank President Ajay Banga has previously outlined the institution’s capacity to scale up support significantly during systemic shocks. He noted that the bank’s toolkit includes contingent financing arrangements, unused project balances, and fast-disbursing mechanisms capable of mobilizing “an estimated $20 billion to $25 billion.”
Beyond that initial layer, Banga added that the institution could reallocate parts of its existing portfolio, potentially raising total crisis response capacity to “$60 billion over six months,” with longer-term adjustments pushing that figure toward “around $100 billion.”
IMF Expectations and Slow Uptake of Requests
At the same time, the International Monetary Fund, led by Kristalina Georgieva, has estimated that up to a dozen countries could require between $20 billion and $50 billion in near-term assistance. However, actual requests have been slower than expected.
“Countries are definitely in wait-and-see mode,” said one source familiar with the situation, speaking anonymously due to the sensitivity of ongoing negotiations.
Three sources indicated that relatively few formal requests have been submitted so far, despite the growing economic strain.
Why Some Governments Are Hesitant
Analysts suggest that reluctance to immediately engage with global lenders reflects both political caution and domestic economic concerns. Kevin Gallagher, director of the Global Development Policy Center at Boston University, noted that countries often prefer World Bank-linked instruments over IMF programs.
He explained that IMF support typically comes with stricter policy conditions, adding that such requirements can deepen domestic tensions in fragile environments.
Governments facing inflation, subsidy pressures, and public unrest may therefore prefer World Bank mechanisms that provide liquidity without triggering immediate austerity commitments.
A Waiting Game as Global Economic Risks Build
While financial safety nets are being activated, the overall response remains measured. Many governments appear to be assessing the duration and severity of the conflict’s economic impact before fully committing to large-scale borrowing or restructuring programs.
For now, the situation reflects a cautious global posture: emergency systems are being prepared and partially activated, but widespread drawdowns have yet to materialize at scale.