According to a World Bank report, after the start of the Iran war, 27 countries of the world have demanded emergency funds. These countries have started the process of implementing such systems, through which they can quickly get funds from the World Bank when needed. An internal document obtained by Reuters states that the names of these countries and the amount demanded have not been disclosed. The World Bank also did not comment on this.
According to the report, after the increase in conflict in the Middle East since February 28, three countries have approved the new Crisis Support System, while the rest of the countries are still completing its process. The Iran war is affecting the economy of the entire world. The problems of many countries have increased due to the increase in oil and gas prices. The supply chain has also been affected due to instability in the energy market. Apart from this, the supply of fertilizer is also stopping, due to which farming is being affected.
Kenya and Iraq confirmed asking for help
Kenya and Iraq have confirmed that they have asked for early financial help from the World Bank. Petrol and diesel prices are increasing rapidly in Kenya, while Iraq is facing a huge decline in oil earnings.
According to the report, these 27 countries are among the 101 countries that can benefit from the already prepared crisis fund system. Of these, 54 countries are part of the Rapid Response Plan. Under this scheme, any country can immediately use 10% of its sanctioned but not yet used funds.
How much help will the World Bank provide?
World Bank President Ajay Banga had said last month that if needed, the bank can provide immediate financial assistance of 20 to 25 billion dollars. He said that by including the remaining funds from old projects and other schemes, this assistance can reach 60 billion dollars in the next six months. In future, this amount can also go up to 100 billion dollars.
At the same time, International Monetary Fund (IMF) chief Kristalina Georgieva had said that about 12 countries can also ask for help from the IMF. However, very few countries have yet applied officially. Experts say that many countries are preferring to take help from the World Bank instead of the IMF, because the IMF usually imposes strict conditions like cutting expenditure. This may further increase the economic and social crisis in already troubled countries.
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