The head of the global lender, Kristalina Georgieva, said on 17 October, at the close of its annual meetings in Bangkok, that the institution has a duty to help poorer countries struggling with heavy debt, high inflation and price shocks tied to the war in the Middle East.
Her summary of the week was optimism mixed with worry. She pointed to the resilience of the global economy, the promise of AI and Asia's dynamism on the hopeful side. Her concerns were AI itself, inflation, debt, wars and climate risks.
The pressure on low-income countries is concrete. With global interest rates higher, they now spend 8 to 14 per cent of their revenue on debt repayments. Vulnerable nations are also missing the AI investment boom that is driving growth in richer economies while facing higher borrowing costs. Georgieva likened inflation to a tax on the poor. Low-income oil importers are hit hardest by energy prices that have surged since February, when the United States and Israel launched their war on Iran, triggering retaliatory strikes across the region and disrupting oil and gas flows.
The chair of the lender's main steering committee, Saudi Finance Minister Mohammed Al-Jadaan, said in a statement that escalating conflicts and trade tensions could further disrupt key trade routes and worsen energy and food security.
Georgieva said the lender will help countries restructure debt where needed, mobilise domestic resources, attract international finance and create conditions for private investment. She urged governments to set spending targets that prioritise growth and protect the most vulnerable, and spoke of a relentless pursuit of more resources for low-income countries.
On individual cases, she said the lender plans to back Iraq very firmly with a requested loan programme, providing both money and policy support. Talks with Lebanese authorities are progressing, she said, and she expressed confidence in a successful outcome.
