The Asian Development Bank (ADB) has announced a $4 billion financing package to help member economies cope with the economic effects of the Middle East conflict, including approximately $3 billion requested by governments and $1 billion allocated for trade finance to support energy and food imports.
ADB President Masato Kanda said the institution is acting swiftly and at scale to assist countries facing financial pressures, disruptions to remittances and tourism, and challenges involving fuel and fertiliser supplies.
He said ADB is deploying a full range of crisis response instruments, including budget support, trade finance and a new mechanism that allows the rapid repurposing of existing portfolio funds to provide timely and tailored assistance to affected members.
Support requested by 15 governments
ADB said it has received formal requests for assistance from 15 governments across the region, including previously announced requests from Bangladesh, Fiji, the Philippines and Sri Lanka.
The requested support, which follows a financial assistance package unveiled in late March, ranges from $15 million to $1.5 billion. It includes policy-based loans, countercyclical financing, rapid repurposing of existing sovereign portfolio funds and emergency assistance loans.
The bank also confirmed that discussions are ongoing with four additional countries whose economies continue to be affected by the conflict.
India seeks funding for resilience and clean energy
Separately, the Government of India has requested $1.5 billion in ADB financing to strengthen resilience while advancing reform-based urban transformation and clean energy goals.
The proposed package includes a $1 billion policy-based loan under the Urban Transformation and Investment Program to maintain momentum in urban infrastructure investment and reforms, along with $500 million under the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program.
According to ADB, the clean energy funding is intended to expand access to renewable energy, reduce reliance on imported fuels, strengthen domestic manufacturing, install battery energy storage systems, promote circular economy initiatives and enhance long-term energy security.
Trade finance expanded for essential imports
In addition to sovereign financing, ADB has reactivated support for oil imports under its Trade and Supply Chain Finance Program on an exceptional and temporary basis to help ease the impact of rising oil prices and supply chain disruptions.
Since March 1, the programme has provided $673 million to support oil and gas imports and a further $390 million for food security initiatives across nine countries, helping maintain access to essential supplies amid global market disruptions.
ADB also said trade finance support for the Cook Islands is expected to begin soon as part of its broader assistance for vulnerable small island developing states.
