ADB Launches Financial Support To Tackle Middle East Conflict Impact

The Asian Development Bank has announced a financial support package to help developing member countries manage the economic and financial impacts of the ongoing Middle East conflict.

ADB President Masato Kanda said the bank will provide rapid, flexible, and scalable assistance, including fast disbursing budget support and trade and supply chain financing to secure essential imports such as oil.

The bank stated it has sufficient resources to protect existing and planned operations while expanding emergency support based on country needs, including the use of its countercyclical lending buffer.

ADB is closely monitoring global market developments, particularly rising energy prices, inflationary pressures, and impacts on external balances across Asia and the Pacific.

Recent analysis shows disruptions to shipping routes have increased costs and delivery times. Supply risks now extend beyond energy to key inputs such as petrochemicals and fertilizers, affecting agriculture and food production. Economies dependent on tourism and remittances face added vulnerabilities, while tightening financial conditions are placing pressure on currencies and capital flows.

In response, ADB will provide financial and technical support to help countries manage risks, maintain macroeconomic stability, and protect vulnerable populations.

The support package includes two main components. The first is fast disbursing budget support through instruments such as the Countercyclical Support Facility to help governments address fiscal pressures and stabilise economies.

The second is the Trade and Supply Chain Finance Program, which supports private sector imports of critical goods including energy and food. ADB has also decided to temporarily reinstate support for oil imports under this program due to rising prices and supply disruptions.

ADB has begun discussions with severely affected countries and will continue working with governments, development partners, and the private sector to ensure coordinated responses aimed at maintaining economic stability and protecting vulnerable communities.