The Israeli military says it is intercepting rockets fired from Yemen

The World Bank wants to release emergency funds to Lebanon, potentially up to $100 million, through the use of special clauses in existing loan agreements, its managing director for operations told Reuters.

The Washington-based development lender currently has $1.65 billion in loans to the country, including a $250 million loan approved this week to connect distributed renewable energy projects in the country support.

Amid fighting across southern Lebanon, the bank was currently discussing ways it could help support the economy, including through the use of so-called Contingent Emergency Response Components (CERCs) clauses.

“We can leverage our existing portfolio and free up some money for really critical, short-term liquidity needs,” said Anna Bjerde.

CERCs are present in around 600 of the bank’s existing projects worldwide and allow it to redirect undisbursed funds when requested by a government, such as after a health or natural disaster or during a conflict.

Lebanon has not yet made such a request, Bjerde said.

After a year of exchanges of fire between Hezbollah and Israel, most of which were confined to the border region, the conflict in Lebanon has escalated significantly.

Hezbollah fired rockets at Israel’s third-largest city of Haifa on Monday, as Israeli forces prepared to expand their ground attacks into southern Lebanon on the first anniversary of the Gaza war that has spread the conflict across the Middle East.

The Lebanese government could choose to use an existing social protection program introduced during the COVID-19 pandemic that allows for the provision of financial support to individuals, Bjerde said.

“It has the advantage of being fully digital so you can reach people, and also it’s somewhat verifiable… so we’ll probably also use that to increase the social safety net for those who are particularly affected.”

Up to a million people have been internally displaced in the country, she added: “That’s why it’s important that we focus on that.”

Lebanon’s finance ministry and economy ministry did not immediately respond to requests for comment.