Rapid support
ADB President Masato Kanda said the bank would provide “rapid, flexible, and scalable assistance” to help countries address immediate pressures while strengthening long-term resilience.
This includes fast-disbursing budget support and financing for trade and supply chains to ensure access to essential goods, including oil.
“This builds on our strong track record of supporting Asia and the Pacific through periods of global uncertainty,” Kanda said.
Rising risks
ADB said it is closely monitoring global market developments, particularly the effects of rising energy prices, inflation, and external account pressures across the region.
Its latest analysis showed that disruptions to shipping routes have already driven up costs and delivery times.
Supply risks are also expanding beyond energy to key industrial inputs such as petrochemicals and fertilizers, which could have serious consequences for agriculture and food production.
Tourism- and remittance-dependent economies are expected to face additional vulnerabilities, while tighter financial conditions are putting pressure on currencies and capital flows.
Two measures
In response, ADB is preparing two main interventions to support affected economies.
The first is fast-disbursing budget support for countries facing fiscal strain, including the use of its Countercyclical Support Facility to help stabilize economies and protect vulnerable populations.
The second is the bank’s Trade and Supply Chain Finance Program (TSCFP), which supports private sector activity to ensure continued access to critical imports such as energy and food.
Oil support
ADB said it would, on an exceptional basis, reactivate support for oil imports under the program to address the sharp rise in prices and supply disruptions.
The move recognizes the growing strain on economies across Asia and the Pacific due to higher fuel costs and supply chain bottlenecks.
Ongoing talks
The bank said it has begun discussions with severely affected member countries on possible immediate assistance.
It also pledged to work closely with governments, development partners, and the private sector to ensure coordinated responses aimed at maintaining economic stability and protecting vulnerable sectors.
ADB, founded in 1966, is a multilateral development bank owned by 69 members and supports sustainable and inclusive growth across Asia and the Pacific. — Ed: Corrie S. Narisma
