European Development Bank Announces €5 Billion Support for War-Affected Economies

The European Bank for Reconstruction and Development has unveiled a €5 billion ($5.9 billion) funding plan to support economies impacted by the ongoing Middle East conflict.

The bank said the funds will be deployed in 2026 to assist countries directly affected by the war, including Iraq, Jordan, Lebanon, as well as the West Bank and Gaza. Support will also extend to neighbouring economies such as Egypt, Turkey, Armenia, and Azerbaijan.

According to the bank, the conflict has already caused widespread economic disruption, including trade route interruptions, energy and commodity price shocks, and declining investor confidence, all of which are affecting livelihoods across the region.

EBRD President Odile Renaud-Basso said the institution is stepping up its support during a period of heightened uncertainty, emphasizing its role in assisting economies, businesses, and communities during difficult times.

The funding will focus on stabilising financial systems, supporting economic activity, improving energy security, and ensuring the continued delivery of essential goods and services. The bank also aims to protect jobs and improve access to finance.

As part of its efforts, the EBRD confirmed it has already approved a project to support Lebanon’s retail sector, with further investments expected depending on evolving needs.