IMF calls for aid to poorer nations hit by inflation and war fallout

The International Monetary Fund said it must step up support for low‑income countries that are grappling with soaring debt, high inflation and price shocks linked to regional conflicts. Managing Director Kristalina Georgieva made the remarks as the IMF’s annual meetings in Bangkok concluded on Saturday, Oct. 17, 2026.

Georgieva told reporters that talks with policymakers worldwide revealed a mix of optimism and concern. “We see optimism in the resilience of the global economy, the promise of AI, and the dynamism of Asia,” she said, adding that “AI also raises worries, as do inflation, high debt levels, wars and climate risks.”

She warned that many vulnerable nations are being left out of the AI‑driven growth surge that richer countries are enjoying, while simultaneously facing higher borrowing costs. Global interest‑rate hikes have pushed low‑income states to allocate between eight and fourteen percent of their revenue to debt service, up from earlier years.

“People everywhere, especially in poorer countries, dislike inflation. It acts like a tax on the poor,” Georgieva said. The warning came as oil‑importing low‑income economies feel the brunt of rising energy prices. Prices have surged since February, when the United States and Israel launched a war on Iran, prompting retaliatory strikes in the Middle East and disrupting oil and gas supplies.

Saudi Finance Minister Mohammed Al‑Jadaan, who chairs the International Monetary and Financial Committee (IMFC), warned that “escalating conflicts and trade tensions could further disrupt critical trade routes, increase commodity price pressures, including refined energy products, and worsen energy and food security.” The IMFC oversees the 191‑member IMF.

Georgieva emphasized the Fund’s duty to help countries restructure debt when needed, to free up domestic resources, attract international financing and create a climate for private investment. She said low‑income nations must set spending priorities that foster growth and protect the most vulnerable, and that the IMF is in a “relentless pursuit of more resources for low‑income countries.” “When we do our best, it translates into better lives for people,” she added.

The IMF also announced plans to provide firm backing to Iraq through a requested loan programme, and said talks with Lebanese authorities are making headway. “We will get to Iraq both money and policy support,” Georgieva said. “In the case of Lebanon, we are in very intense discussions with Lebanese authorities. We have made significant progress towards the programme. There is still a bit more work to do together, and I’m confident we will be successful.”