The World Bank Group says it is closely monitoring global market developments, and is in direct contact with the most affected client countries to understand what they are facing on the ground. Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilizers and other critical agricultural inputs. Crude oil prices increased by nearly 40 percent between February and March, the price of liquefied natural gas shipments to Asia rose by almost two-thirds, and the prices of nitrogen-based fertilizers increased by nearly 50 percent in March.
The Bank in a statement disclosed that a number of its clients in emerging markets have reached out as the conflict in the Middle East has started to impact commodity prices and logistics. “We are working with governments, the private sector, regional partners, and other stakeholders to help them through this new set of challenges”.
“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. We will draw on the full range of instruments we have available to support governments, firms, and households. 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. Through our private sector arms, we will provide firms with essential liquidity, trade finance, and working capital”.
While observing that this is an evolving situation and the group cannot predict the full range of impacts, the statement observed that the longer this lasts, and the more damage there is to critical infrastructure, the more challenging this development will be for its 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”.
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