The Asian Development Bank (ADB) has announced that it will extend a financial assistance package worth US$ 4 billion to 15 countries, including Sri Lanka, help countries withstand the impact of the Middle East conflict.
This includes about US$3 billion requested by governments and US$1 billion provided as trade finance for energy and food imports, ADB said.
“ADB is acting with speed and scale to support countries experiencing a range of impacts from the Middle East conflict, including pressure on finances, remittances, tourism, and fuel and fertilizer supplies,” said ADB President Masato Kanda. “At this time of acute uncertainty and risk, we are deploying our full suite of crisis response instruments including budget support, trade finance, and a new mechanism to rapidly repurpose existing portfolio funds to deliver the tailored and timely support our members, from large to small, need to safeguard their economies and communities.”
ADB stated that it has received formal requests for support from 15 affected governments across the region, including previously announced requests from Bangladesh, Fiji, the Philippines, and Sri Lanka.
The requests, which follow a financial support package announced by ADB in late March, range in size from US$15 million to US$1.5 billion and include policy-based loans, countercyclical financing, rapid repurposing of existing sovereign portfolio funds, and emergency assistance loans.
Moreover, the ADB is in discussions with an additional four countries facing continued impacts on their economies.
In addition to these requests, the government of India has requested US$ 1.5 billion in ADB financing to build and accelerate resilience and to sustain reform-based urban transformation and clean energy objectives.
The proposed assistance includes a US$1 billion policy-based loan under the Urban Transformation and Investment Program to sustain momentum in urban infrastructure investment and reforms, and US$500 million under the Accelerating Affordable and Inclusive Rooftop Solar Systems Development Program to expand clean energy access, reduce dependence on imported fuels, strengthen domestic manufacturing, install battery energy storage systems, promote circular economy initiatives, and enhance long-term energy security, ADB stated.
