THE Asian Development Bank (ADB) is ready to provide the Philippines with up to $1.75 billion in additional financing to help the country manage the impact of the Middle East war.
On Friday, ADB President Masato Kanda met President Ferdinand Marcos Jr. at the Malacañang Palace to discuss the matter.
“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” said Kanda. “ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience.”
Aside from policy-based and countercyclical lending of up to $1.75 billion, the ADB said it may also provide trade finance, if needed, to further help Filipinos manage the impact of oil supply shock and other economic shocks. This is in addition to roughly $2 billion in policy-based loans that the ADB is setting aside for the country this year.
The Philippines has been severely affected by the Middle East war due to its heavy dependence on imported oil, fertilizers, and other commodities. In response, the Philippine government declared a national energy emergency and extended assistance to affected sectors.
The ADB said it is also working with national government agencies to safeguard vulnerable sectors and boost long-term resilience. These initiatives include offering advisory support to the Department of Agriculture regarding domestic fertilizer security, helping the Department of Social Welfare and Development with social protection, and providing support for energy security and efficiency, clean energy, and investments for mass transit to lessen the country’s vulnerability to fuel price shocks.
