World Bank weighs up to $100B support as debt and energy risks rise
The World Bank is preparing for a potentially tougher period as energy costs, debt burdens and climate risks build across developing economies. The Bangkok meetings could determine how far emergency support and private capital mobilization need to expand.
The World Bank is in talks with roughly 30–40 countries over potential financial assistance as higher energy and fertilizer prices add to already heavy debt burdens. World Bank President Ajay Banga discussed the talks ahead of the institution’s annual meetings with the IMF in Bangkok.
The Bank initially set aside a $25 billion emergency financing package, but demand has so far been weaker than expected, helped by the resilience of the global economy and large-scale investment in AI. Banga cautioned, however, that conditions could shift over the coming months, particularly if pressure from elevated fuel and food prices intensifies.
Debt burden remains the biggest risk for developing economies
Debt servicing remains one of the most pressing challenges. According to World Bank estimates, developing economies are due to pay about $400 billion to external creditors in 2026, with interest payments accounting for roughly one-third of that amount.
High borrowing costs, expensive energy and the risk of a severe El Niño are adding another layer of pressure. Should conditions deteriorate, countries could draw not only on the initial emergency package but also redirect around $35 billion from programs that have already been approved. If necessary, the total amount of available support could be expanded to roughly $100 billion.
World Bank seeks more private capital
At the same time, the World Bank is trying to reduce developing economies’ dependence on public financing. Over the past fiscal year, the institution helped mobilize around $112 billion in private capital, a substantial increase from the previous year.
The challenge is where that money ultimately goes. A large share continues to flow toward bigger emerging economies, including India, Brazil, Argentina and Turkey, while low-income countries capture far less. The Bank is therefore developing new mechanisms to channel financing toward small and medium-sized businesses while continuing efforts to restructure costly sovereign debt.
Bangkok meetings put debt and crisis support in focus
These issues will be central to the IMF and World Bank annual meetings in Bangkok from October 12–18. Debt sustainability, access to capital for developing economies and the ability of international institutions to respond to fresh economic shocks are all set to feature prominently on the agenda.
Thailand is completing preparations for the event, which will bring together thousands of representatives from governments, central banks and international financial institutions. More on Bangkok’s preparations and what the meetings could mean for the region is available in the Traders Union report.
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