World Bank president Ajay Banga talks with 30‑40 countries on $100 billion crisis aid cushion

World Bank opens $100 billion crisis fund talks with dozens of nations

Ajay Banga, the World Bank’s president, said on the sidelines of the IMF‑World Bank annual meetings in Bangkok that the Bank is in active dialogue with 30 to 40 countries about drawing on a potential $100 billion emergency cushion. The pool would extend the initial $25 billion crisis window created when the Middle‑East war began in February, adding a further $35 billion that could be released by diverting resources from already‑approved projects.

Why the aid is needed now

Banga warned that a sharp rise in diesel and fertilizer prices, combined with the threat of a “super El Niño,” is tightening fiscal space for many low‑ and middle‑income economies. He noted that developing countries owe about $400 billion to external creditors in 2026, with interest payments alone making up one‑third of that total. High‑interest borrowing, still heavy from COVID‑19 stimulus and the inflation surge after Russia’s invasion of Ukraine, leaves many governments vulnerable to the current energy shock.

How much has the Bank already mobilised?

The World Bank announced it attracted a record $112 billion in private capital for the year ending June, up from $69 billion a year earlier and more than triple the 2022 total. Its own resources amounted to $123 billion, giving a combined $235 billion of financing for the year. By contrast, $70 billion was disbursed during the pandemic‑era emergency programme – a benchmark Banga said the new cushion would surpass.

What countries are talking to the Bank?

Banga said the Bank is “engaged” with a broad set of partners, estimating 30‑40 nations are currently in dialogue. He did not name all of them, but the Bank’s latest data list the top ten recipients of its financing as Brazil, India, Turkey, Romania, Nigeria, Argentina, South Africa, Bangladesh, Mexico and Chile. Earlier debt‑for‑development swaps have already been set up for Angola and Ivory Coast, with a portfolio‑based guarantee for Argentina and “14 or 15” similar projects in the pipeline.

What’s next?

The President stressed that many countries are showing more interest in re‑tooling existing projects than in tapping the immediate crisis window, a sign that longer‑term financing solutions are also on the table. He promised new initiatives aimed at micro‑, small‑ and medium‑sized enterprises later in the week, and highlighted the role of the World Bank’s Multilateral Investment Guarantee Agency in expanding political‑risk guarantees and local‑currency financing.

Outlook

If the energy‑price shock deepens or the El Niño materialises, Banga said the Bank is prepared to make the full $100 billion available, far exceeding the $70 billion already deployed in the pandemic response. The discussion underscores how closely the World Bank is linking emergency liquidity with debt‑relief measures as developing economies confront a perfect storm of high‑cost borrowing, climate risk and volatile commodity markets.