How wars force countries to seek quick cash

Since fighting broke out in the Middle East in late February, 27 nations have rushed to unlock emergency funds from the World Bank. They did not announce their names or how much they plan to borrow, but three already activated new backup plans while the rest are still filling out paperwork. The conflict disrupted oil shipments and fertilizer deliveries, pushing up fuel costs in Africa and slashing oil income for Iraq. Kenya and Iraq openly admitted they are now asking the bank for fast cash to handle the damage. Both countries join a larger group of 101 nations that had pre-approved safety nets—54 signed up for a “quick-draw” option allowing them to use up to 10% of their unused loans.At a press briefing last month, a top official said the bank can immediately hand out between $20 billion and $25 billion using existing tools. Over six months, that total could climb to $60 billion if old loans are shuffled around, and with long-term tweaks, the pot might reach $100 billion. Meanwhile, the International Monetary Fund expects up to twelve countries to ask for $20 billion to $50 billion in the next few months. Yet so far, requests are lagging, according to people close to the discussions. One source, who did not want to be named, explained that most governments are holding off until it is clearer how deep the crisis will go. Academics point out that countries lean toward the World Bank instead of the IMF because IMF deals usually demand spending cuts that can worsen unrest—something Kenya already knows after recent protests.