The Asian Development Bank (ADB) has said it is ready to deploy timely financial and technical support to help developing member countries (DMCs) mitigate the impacts of the Middle East conflict.
In a statement late Tuesday, the bank assured that it has ample resources to safeguard existing and planned operations, while expanding emergency support in line with the needs of these countries.
“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 ADB President Masato Kanda.
“This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” Kanda added.
The ADB said it will disburse budget 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 bank’s Trade and Supply Chain Finance Program (TSCFP) is ready to provide support to the private sector to ensure critical imports, including energy and food, continue to flow.
The ADB will reactivate support for oil imports under the program on an exceptional basis for a limited period.
The bank said it is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly regarding energy price volatility, inflationary pressures, and external account balances.
The ADB noted that disruptions to shipping routes have already increased costs and delayed deliveries. It added that supply risks are likely to spread to key industrial inputs—such as petrochemicals and fertilizers—which could in turn impact agriculture and food production.
Tourism and remittance-dependent economies also face vulnerabilities.
According to the ADB, increasing uncertainty and tightening financial conditions across the region are also putting pressure on currencies and capital flows.
The ADB said it has started discussions with severely affected DMCs on possible immediate support and would continue to work closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability. (PNA)
