Abu dhabi: The Asian Development Bank (ADB) is swiftly mobilizing $4 billion in financing to assist countries in coping with the repercussions of the Middle East conflict. This initiative includes approximately $3 billion requested by various governments and an additional $1 billion allocated as trade finance for energy and food imports.
According to Emirates News Agency, ADB President Masato Kanda emphasized the urgency and scale of the bank's response, which aims to address the financial, remittance, tourism, and supply chain challenges posed by the conflict. He stated that ADB is utilizing a comprehensive set of crisis response tools, including budget support and the rapid repurposing of existing funds, to provide timely assistance tailored to the needs of its member countries.
ADB has already received formal requests for support from 15 governments in the region, including Bangladesh, Fiji, the Philippines, and Sri Lanka. These requests range from $15 million to $1.5 billion and encompass policy-based loans, countercyclical financing, and emergency assistance loans. Discussions are ongoing with four additional countries facing similar economic challenges.
In addition to sovereign assistance, ADB has reactivated its Trade and Supply Chain Finance Program to support oil imports, aiming to mitigate the effects of soaring oil prices and supply chain disruptions. Since March 1, the program has facilitated $673 million for oil and gas imports and $390 million for food security across nine countries, ensuring access to essential supplies amid global market instability.
