The Asian Development Bank (ADB) has announced a financial support package to help its developing member countries (DMCs) manage the economic fallout from the ongoing conflict in the Middle East, including fast-disbursing budget support and revived financing for oil imports.
The package is designed to deliver rapid, flexible, and scalable assistance to help countries address immediate pressures while strengthening long-term resilience, the Manila-based lender said in a statement on Tuesday.
“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.”
The bank has ample resources to safeguard existing and planned operations while expanding emergency support in line with DMC needs, including through its countercyclical lending buffer.
The conflict has already disrupted shipping routes, driving up costs and delivery times. Supply risks extend beyond energy to industrial inputs such as petrochemicals and fertilisers, with serious implications for agriculture and food production, according to ADB analysis. Economies dependent on tourism and remittances face compounded vulnerabilities.
In response, the ADB is offering fast-disbursing budget support through its Countercyclical Support Facility to help governments stabilise their economies and mitigate the impact on vulnerable populations.
The bank also decided to reactivate support for oil imports under its Trade and Supply Chain Finance Program (TSCFP) on an exceptional basis for a limited period, acknowledging that economies across the region are being severely affected by the rapid surge in oil prices and supply chain disruptions.
ADB has begun discussions with severely affected DMCs on 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 the poor and most vulnerable.
