The heads of the International Energy Agency, International Monetary Fund, and World Bank Group have agreed to form a coordination group to maximise their institutions' response to the energy and economic impacts of the war in the Middle East.
The institutions said in a joint statement, “At these times of high uncertainty, it is paramount that our institutions join forces to monitor developments, align analysis, and coordinate support to policymakers to navigate this crisis. This is especially the case for countries that are most exposed to the downstream impacts from the war and those confronting more limited policy space and higher levels of debt.“
To ensure a coordinated response, the institutions have jointly agreed to form a group that will:
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Assess the severity of impacts across countries and regions through coordinated data sharing on energy markets and prices, trade flows, fiscal and balance of payments pressures, inflation trends, export restrictions of key commodities, and supply chain disruptions.
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Coordinate a response mechanism that may include: targeted policy advice, assessment of potential financing needs and related provision of financial support (including through concessional financing), and use of risk mitigation tools as appropriate.
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Mobilise relevant stakeholders, including other multilateral, regional, and bilateral partners, to deliver a coordinated and efficient support to countries in need.
The statement added, “The group will work with, and draw on, other international organisations’ expertise as needed.
“We are committed to working together to safeguard global economic and financial stability, strengthen energy security, and support affected countries and people on their path to sustained recovery, growth, and job creation through reforms.”