A total of 27 countries are preparing to activate crisis-response mechanisms to access fast-track financing from World Bank programs following the outbreak of conflict between Iran and the United States (US), according to internal World Bank documents seen by Reuters.
The documents, cited by Reuters on Monday (May 25), do not specify which countries are involved nor the total value of funds that may be requested. The World Bank declined to comment on the matter.
The report states that three countries have already approved new financing instruments since the conflict in the Middle East began on February 28, while others are still finalizing their internal approval processes.
Officials in Kenya and Iraq have confirmed they are seeking rapid financial support from the World Bank to mitigate the economic impact of the war.
In Kenya, pressure has intensified due to rising fuel prices, while Iraq has experienced a sharp decline in oil revenues as regional instability disrupts market conditions.
The 27 countries reportedly seeking emergency borrowing are part of a broader group of 101 nations eligible for various World Bank crisis financing tools designed to provide rapid liquidity during global shocks.
Of those, 54 countries have joined the Rapid Response Option, a mechanism allowing governments to access up to 10% of undisbursed funds under existing World Bank lending programs.
World Bank President Ajay Banga said last month that the institution’s crisis toolkit allows countries to draw on pre-arranged contingency financing, reallocate unused project balances, and access fast-disbursing instruments during emergencies.
Through these mechanisms, countries could potentially access between US$20 billion and US$25 billion in immediate support.
Banga added that the World Bank could further reallocate parts of its portfolio, potentially raising total crisis-related support to as much as US$60 billion within six months. Over a longer horizon, the figure could expand to around US$100 billion depending on demand and available instruments.
Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has estimated that around a dozen countries may seek short-term assistance ranging between US$20 billion and US$50 billion.
However, according to three Reuters sources familiar with the matter, only a limited number of formal requests have so far been submitted to the IMF.
“Countries are clearly still in wait-and-see mode,” one of the sources said on condition of anonymity.
Kevin Gallagher, director of the Global Development Policy Center at Boston University, said many countries appear to prefer World Bank financing over IMF assistance due to differences in policy conditions.
He noted that IMF programs often require fiscal austerity measures that can worsen social tensions, as seen in countries such as Kenya, where public dissatisfaction has grown amid economic pressure.
As global instability spreads following the Iran–US conflict, multilateral lenders are expected to play an increasingly central role in stabilizing vulnerable economies facing rising inflation, commodity shocks, and fiscal strain.
