THE Department of Finance (DOF) is preparing to access up to $1.5 billion in emergency financing from the Asian Development Bank (ADB) to help cushion the economy from the impact of the Middle East war.
Finance Secretary Frederick Go said the government had informed the ADB of its intent to tap the Manila-based lender’s counter-cyclical support facility (CSF), a rapid-disbursing financing instrument designed to provide funding to member countries facing external shocks.
“We have expressed our intent to tap the ADB’s counter-cyclical support facility in the amount of up to $1.5 billion to provide additional funding to support the response measures under the Uplift Framework...,” he told reporters last week.
“This includes assistance to vulnerable sectors in order to mitigate the impact of oil supply and other shocks,” he added.
The Uplift framework refers to the Unified Package for Livelihoods, Industry, Food and Transport initiative launched by the government in March in response to the energy shock caused by the Middle East war.
Officials have said that the government would need P155 billion to fund Uplift programs and projects. At current exchange rates, $1.5 billion is equivalent to approximately P91.5 billion.
The ADB’s CSF, meanwhile, is designed to provide rapid budget support during periods of heightened external risk, allowing governments to respond more quickly to emerging pressures on growth, inflation, and fiscal stability.
While the Philippines has signaled its intention to tap the facility, Go said the process still required compliance with ADB procedures before any financing can be finalized and disbursed.
In March, the ADB said it was ready to provide timely financial and technical assistance to help developing member countries (DMCs) cope with the impact of the Middle East conflict.
DMCs refer to low- and middle-income member countries in Asia and the Pacific that are eligible for ADB support, including financing and technical assistance.
This group includes countries such as Cambodia, Vietnam, and the Philippines, which often face structural economic vulnerabilities and depend on external support to sustain growth and stability.
