Dhaka, Bangladesh (BBN) - The Asian Development Bank (ADB) on Tuesday announced a financial support package to help its developing member countries (DMCs) mitigate the economic and financial fallout from the ongoing conflict in the Middle East.
“ADB will deliver rapid, flexible, and scalable assistance to help countries manage immediate pressures and strengthen long-term resilience,” ADB President Masato Kanda said in a statement.
The support will include fast-disbursing budget assistance and trade and supply-chain financing to secure imports of essential goods, including oil, he added.
The Manila-based lender said it has sufficient resources to safeguard existing and planned operations while expanding emergency support in line with DMC needs, including through its countercyclical lending buffer. The bank is closely monitoring global market developments, particularly energy price volatility, inflationary pressures, and external account risks across Asia and the Pacific.
ADB’s latest analysis shows that disruptions to key shipping routes have already raised transport costs and delivery times. Supply risks extend beyond energy to critical industrial inputs such as petrochemicals and fertilisers, posing potential challenges for agriculture and food production. Economies dependent on tourism and remittances are also facing heightened vulnerabilities, while tighter financial conditions are putting pressure on currencies and capital flows.
In response, ADB said it stands ready to provide timely financial and technical support to help countries manage risks, maintain macroeconomic stability, and protect vulnerable populations.
The support package has two main components. The first is fast-disbursing budget support for countries facing fiscal pressures, including the use of the bank’s Countercyclical Support Facility to help governments stabilise their economies and cushion the impact on livelihoods.
The second component is ADB’s Trade and Supply Chain Finance Program (TSCFP), which supports the private sector to ensure continued flow of critical imports, including energy and food. The bank has decided to reactivate support for oil imports under the programme on an exceptional and temporary basis, citing the sharp rise in oil prices and supply chain disruptions.
ADB said it has begun discussions with severely affected DMCs on possible immediate support and will continue working with governments, development partners and the private sector to ensure coordinated responses aimed at maintaining economic stability and protecting vulnerable groups.
BBN/SSR/AD