World Bank to aid economies hit by Mideast conflict

The World Bank Group announced on Thursday (Friday Philippine time) that it will provide financial assistance to member countries — including the Philippines — in response to the negative impact of the Middle East conflict on the global economy.

In a statement, the organization said it is closely monitoring global market developments as the conflict continues to affect commodity prices and logistics.

“The World Bank Group is moving quickly to help client countries to navigate this crisis. We are ready to respond at scale — combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth,” the statement read.

“Our aim is to deliver immediate relief by leveraging our active portfolio, our crisis response toolkit, and pre-arranged financing facilities. We will transition progressively to fast-disbursing instruments anchored in sound policies to underpin recovery,” it added.

The Philippines has been a member of the World Bank Group since 1946, shortly after its inception. As a member and shareholder, it receives financial and technical support for development projects, primarily through the International Bank for Reconstruction and Development, which lends to middle-income countries such as the Philippines.

The World Bank noted that the conflict has driven sharp increases in key global commodities, with oil prices rising by nearly 40 percent between February and March, liquefied natural gas shipments to Asia increasing by almost two-thirds, and nitrogen-based fertilizer prices climbing by nearly 50 percent in March. It added that it would expedite the use of its full range of financial instruments to support member economies.

“Our aim is to deliver immediate relief by leveraging our active portfolio, our crisis response toolkit, and pre-arranged financing facilities. We will transition progressively to fast-disbursing instruments anchored in sound policies to underpin recovery,” the statement said.

Locally, pump prices have reached triple-digit levels, with diesel now ranging between P107 and P134.30 per liter, prompting the President to declare a state of “energy emergency” on Wednesday.

“Clearly, this is an evolving situation and we cannot predict the full range of impacts. As everyone has said, the longer this lasts, and the more damage there is to critical infrastructure, the more challenging this will be for our clients. That said, we are determined to be helpful and do all we can to safeguard some of the hard-won economic progress that these countries are making,” the statement added.

The World Bank’s support follows a similar assistance package pledged earlier this week by another multilateral lender, the Manila-based Asian Development Bank (ADB). In its own statement, the ADB said it would deploy accelerated support to developing member countries such as the Philippines to mitigate the impact of the conflict on oil prices, including reactivating support for oil imports under its Trade and Supply Chain Finance Program on an exceptional basis for a limited period.