ADB announces support package for developing nations hit by Mideast conflict

• ADB says expanding emergency support amid Mideast conflict.  
• Lender closely monitoring global market developments, says Kanda.
• ADB president says has ample resources to safeguard operations. 
  

MANILA: The Asian Development Bank (ADB) on Tuesday announced a financial support package to help developing member countries mitigate the economic and financial impacts of the Middle East conflict.

In a statement, ADB President Masato Kanda said the lender would deliver “fast-disbursing budget support and trade and supply chain finance to secure the import of essential goods, now including oil”.

“This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” he added.

ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with DMC needs, including utilising its countercyclical lending buffer, said Kanda.

He maintained that the bank 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 latest ADB analysis indicates that disruptions to shipping routes have already increased costs and delivery times, while supply risks extend beyond energy to key industrial inputs such as petrochemicals and fertilisers, with serious implications for agriculture and food production. Furthermore, the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows.

The ADB said the financial support has two main components. First, is the use of the Countercyclical Support Facility to help stabilise economies and mitigate the impact of shocks on vulnerable groups.

The second is the Trade and Supply Chain Finance Program support to keep critical imports, especially energy and goods, flowing, including the temporary reactivation of oil import support.

The ADB said it has started discussions with all severely affected developing member countries on possible immediate support.