The Asian Development Bank (ADB) on Tuesday announced a broad financial support package aimed at helping developing member countries (DMCs) cushion the economic fallout from the escalating conflict in the Middle East.
ADB President Masato Kanda said the bank will roll out “rapid, flexible, and scalable” assistance to address immediate pressures while strengthening long-term resilience. This includes fast-disbursing budget support and expanded trade and supply chain financing to secure essential imports, including oil.
The move comes as the bank closely monitors rising risks across Asia and the Pacific, particularly from energy price volatility, inflation, and widening external imbalances.
Disruptions to key shipping routes have already increased transport costs and delivery times, while supply risks are spreading beyond energy to critical inputs such as petrochemicals and fertilizers—raising concerns for agriculture and food production.
ADB also flagged broader vulnerabilities, especially for economies reliant on tourism and remittances, as tightening global financial conditions weigh on currencies and capital flows.
The bank said it has sufficient resources to scale up support, including tapping its countercyclical lending buffer.
Two key instruments anchor the response. First is emergency budget support through facilities such as the Countercyclical Support Facility, designed to help governments stabilize public finances and shield vulnerable populations from economic shocks.
Second is the Trade and Supply Chain Finance Program, which supports private sector access to critical imports. The TSCFP provides AAA-rated guarantees and loans through over 250 partner financial institutions worldwide, In 2025, it supported 24,722 transactions in valued at USD5.7 billion, with nearly USD3.5 billion co-financed with the private sector and development partners.
Notably, ADB has reinstated financing for oil imports under the program on an exceptional basis, underscoring the severity of current supply disruptions.
The bank said it has begun consultations with the most affected countries and will coordinate closely with governments, development partners, and the private sector to ensure timely and targeted interventions.
The package reflects growing concern that prolonged conflict could trigger cascading effects across energy, food, and financial systems in the region.
