World Bank Scrambles to Unlock $100M Emergency Funds for Lebanon

The World Bank is contemplating unlocking up to $100 million in emergency funds for Lebanon amid escalating conflict. Driven by existing loan clauses, this financial aid could bolster Lebanon’s economy and address short-term liquidity issues. The focus is on supporting displaced individuals through digital social protection programs.

The World Bank is urgently exploring options to mobilize up to $100 million in emergency funds to support Lebanon, amidst widespread conflict in the region. This financial maneuver involves leveraging special clauses within existing loan agreements, as disclosed by the bank's managing director of operations, Anna Bjerde, to Reuters.

As the southern regions of Lebanon see increased hostility, the Washington-based lender, which already has substantial financial commitments to Lebanon, is exploring mechanisms to assist the troubled economy. Notably, part of the Bank's $1.65 billion loan portfolio to Lebanon includes a recent $250 million allocation aimed at enhancing the country's renewable energy infrastructure.

Utilizing Contingent Emergency Response Component (CERCs) provisions in its projects worldwide, the Bank can redirect undisbursed funds for urgent needs upon a government's request. Despite the dire situation, Lebanon has not made such a request yet. Meanwhile, the Bank is considering bolstering existing digitally managed social safety nets, established during the COVID-19 pandemic, to provide relief to the internally displaced population, now numbering close to 1 million.

(With inputs from agencies.)