World Bank Considering To Release Emergency Funds For Lebanon

The World Bank is considering releasing emergency funds for Lebanon, which could amount to as much as $100 million by utilizing special provisions in current loan agreements, according to its managing director of operations in a statement to Reuters.

The development bank, based in Washington, has a total of $1.65 billion in loans to Lebanon, including a recently approved $250 million loan aimed at connecting various renewable energy projects throughout the country.

In light of ongoing conflict in southern Lebanon, the bank is exploring ways to assist the economy, particularly through the use of Contingent Emergency Response Component (CERC) clauses.

“We can leverage our existing portfolio to provide some funds for urgent, short-term liquidity needs,” stated Anna Bjerde.

CERCs are included in approximately 600 of the bank’s global projects and enable the reallocation of unspent funds at the request of a government, typically in response to health crises, natural disasters, or conflicts.

Bjerde noted that Lebanon has not yet made such a request.