On 24 March, the Asian Development Bank (ADB) announced a financial support package to assist its developing member countries (DMCs) in Asia and the Pacific in mitigating the economic and financial repercussions of the ongoing conflict in the Middle East. The package would provide rapid, flexible, and scalable assistance to manage immediate pressures while strengthening long-term resilience.

Masato Kanda, ADB President, said, “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. This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty.”

The bank possesses ample resources to safeguard existing and planned operations while expanding emergency support tailored to the needs of its member countries. This includes utilising its countercyclical lending buffer to respond effectively to emerging challenges.

Monitoring market developments and regional implications

ADB is monitoring global market changes and how they might affect economies in Asia and the Pacific. There are particular concerns about fluctuations in energy prices, rising inflation, and the balance of external accounts.

A recent ADB analysis shows that shipping disruptions have raised costs and delayed deliveries. Supply risks now affect not just energy but also key industrial inputs like petrochemicals and fertilisers, which pose significant challenges for agriculture and food production. Economies dependent on tourism and remittances are highly vulnerable.

The conflict has also increased uncertainty and tightened financial conditions regionally, exerting pressure on currencies and capital flows.

More on ADB’s financial support package

ADB’s intervention comprises two main components.

The first is fast-disbursing budget support. It is designed to assist DMCs facing heightened fiscal pressures, which includes the use of ADB’s Countercyclical Support Facility to help governments stabilise their economies and mitigate shocks impacting vulnerable populations.

The second is the Trade and Supply Chain Finance Program (TSCFP). This program supports the private sector to ensure the continued flow of critical imports, including energy and food. Notably, ADB has reactivated support for oil imports under the program on an exceptional, limited basis in response to surging oil prices and supply chain disruptions.

ADB has initiated discussions with severely affected member countries to explore immediate support options. The bank will continue to collaborate closely with governments, development partners, and the private sector to ensure coordinated and effective responses to maintain economic stability and protect the most vulnerable.