Building on its track record of supporting economies in Asia and the Pacific during global uncertainty, the Asian Development Bank (ADB) announced its financial support package for developing member countries to cushion the economic and financial impact of the conflict in the Middle East.

ADB President Masato Kanda said the ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with the needs of Developing Member Countries (DMC), including utilizing its countercyclical lending buffer.

“ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience, notably fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil,” said Kanda.

He said the ADB is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly on energy price volatility, inflationary pressures, and external account balances.

Based on the recent ADB analysis, oil supply risks extend beyond energy to industrial inputs such as petrochemicals and fertilizers, with serious implications for agriculture and food production due to disruptions in shipping routes, increased costs, and delivery schedules.

“Tourism- and remittance-dependent economies face compounding vulnerabilities beyond these initial shocks,” said Kanda. He added that the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows.

The ADB is ready to deploy timely financial and technical support to help DMCs manage risks, maintain macroeconomic stability, and protect vulnerable populations, said Kanda.

The Philippines is a major developing member country that receives extensive ADB support for sustainable growth, infrastructure, and climate action, with focus areas including budget support and sector reforms.

Kanda explained that there are two main components to ADB’s intervention. First, the fast-disbursing budget to support to help DMCs facing heightened fiscal pressures, notably the use of the bank’s Countercyclical Support Facility to help governments stabilize their economies and mitigate the impact of shocks on the lives and livelihoods of those most at risk.

The second is ADB’s Trade and Supply Chain Finance Program (TSCFP), which supports the private sector to ensure critical imports, including energy and food, continue to flow.

The bank has decided to reactivate support for oil imports under the program on an exceptional basis for  a limited period. This decision acknowledges that economies and people across the region are being severely affected by the rapid surge in oil prices and supply chain disruptions.

The ADB has begun discussions with all severely affected DMCs on possible immediate support and will continue to work closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability and protect the poor and most vulnerable.

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