World Bank Mobilises $112 Billion in Private Capital as Developing Countries Face Debt Pressures

The World Bank has been in talks with 30-40 countries regarding possible assistance as a result of soaring energy prices due to the conflict in the Middle East, said Ajay Banga, World Bank President in an interview to Reuters dated October 11, 2026. The Bank had set aside $25 billion from a crisis funding window, while $35 billion more would be available by diverting funds from approved projects. With the worsening of situation, up to $100 billion might be available.

Potential World Bank Crisis Funding Amounting to $100 Billion

The president of the World Bank, Ajay Banga, stated that there have been discussions with 30 to 40 countries that are being affected due to increased costs of energy and associated shocks in the economy. The World Bank had initially offered $25 billion in crisis funding.

In addition, $35 billion can be provided to the countries through reallocation of funds meant for prior-approved projects, raising the potential initial aid amount to $60 billion.

In case of worsening economic conditions, up to $100 billion of money could be provided by the World Bank, which is more than the $70 billion that was offered during the COVID-19 pandemic.

How the Energy Shock in the Middle East Impacts Developing Countries

Higher energy prices may affect the cost of transport, electricity, and production. Higher fertilizer prices may impact the cost of farming operations, thus increasing the price of food.

The problem for developing countries is that most developing countries do not have any financial space left after expenditures during the pandemic period and the rise in inflation caused by Russia’s invasion of Ukraine by Russia. Higher global interest rates have made loans more expensive.

According to the World Bank, the amount of the external debt owed by developing countries to the creditors was estimated at around $400 billion in the year 2026, with about one-third of this amount being interest payments.

Record $112 Billion Raised by World Bank from Private Investors

World Bank Group has stated that the bank mobilised a record $112 billion worth of private finance in FY2026 as against $69 billion in FY2025 and $35 billion in FY2022. These figures refer to the financial year ended June 2026.

As per the World Bank, the $123 billion of financing done by the bank itself in the year contributed to making the aggregate of financing and mobilised private finance at about $235 billion. These figures indicate the attempt made to increase private finance in developing countries.

Debt-For-Development Swaps and Financial Guarantees

World Bank and the International Monetary Fund (IMF) are taking steps in tackling the issue of debts in developing nations. This includes domestic revenue enhancement as well as financial guarantees that can assist in managing costly debts.

Debt-for-development swaps can be used whereby funds from reduced debt burdens can be put into use to tackle development issues. According to Banga, the Bank had implemented such swaps in Angola and Côte d’Ivoire and was implementing about a dozen other projects.

Guarantees are being utilized by the Bank to help countries substitute their costlier debt with cheaper financing. The savings made from such actions can help fund initiatives in education, health, water and environmental preservation.