ADB unveils support package for members hit by Middle East crisis

On March 24, the Asian Development Bank (ADB) said it would deliver rapid, flexible, and scalable assistance, including fast-disbursing budget support and trade and supply chain finance to secure imports of essential goods, now including oil. "This builds on our strong track record of supporting Asia-Pacific through periods of global uncertainty," said ADB president Masato Kanda.

ADB has ample resources to safeguard existing and planned operations, while expanding emergency support in line with the needs of its Developing Member Countries (DMCs), including utilising its countercyclical lending buffer.

The bank is closely monitoring global market developments and their potential implications for economies across Asia-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. Tourism- and remittance-dependent economies face compounding vulnerabilities beyond these initial shocks. Furthermore, the conflict is increasing uncertainty and tightening financial conditions across the region, putting pressure on currencies and capital flows.

In response, ADB is ready to deploy timely financial and technical support to help its DMCs manage risks, maintain macroeconomic stability, and protect vulnerable populations. There are two main components to ADB’s intervention. The first is fast-disbursing budget support to help DMCs facing heightened fiscal pressures, notably the use of the bank’s Countercyclical Support Facility to help governments stabilise their economies and mitigate the impact of shocks on the lives and livelihoods of those most at risk.

The second is ADB’s Trade and Supply Chain Finance Programme, which supports the private sector to ensure critical imports, including energy and food, continue to flow. The bank has decided to reactivate support for oil imports under the scheme on an exceptional basis for this limited period. This decision acknowledges that economies and people across the region are being severely affected by the rapid surge in oil prices and supply chain disruptions.

ADB has begun discussions with all severely affected DMCs on possible immediate support and will continue to work closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability and protect the poor and most vulnerable.

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