Iraq, 26 Other Countries Seek Emergency Bank Financing Over War Shock

Iraq and 26 other countries have activated emergency financing mechanisms as the war against Iran begins, turning to the Bank for rapid liquidity support at a moment of mounting fiscal pressure. The move underscores the widening economic spillover from the conflict, especially for countries facing higher fuel costs and weaker revenues. An internal Bank document says the crisis toolkit provides countries with quick liquidity from unused funds in existing programs. Three countries have already approved the use of the new financing instruments. Iraq and Kenya are seeking emergency fiscal support because of falling oil revenues and rising fuel prices. The request reflects the immediate strain on public finances in economies exposed to energy market volatility. Bank President Ajay Banga had said the crisis tools could mobilize between $20 billion and $25 billion in emergency financing. The mechanism is now being drawn on as the conflict drives urgent funding needs across multiple countries.