B Mirror Report:The Asian Development Bank (ADB) on Thursday announced a comprehensive financial assistance package aimed at helping its developing member countries (DMCs) cope with the economic and financial shocks stemming from the ongoing Middle East conflict.

ADB President Masato Kanda said the bank would provide “swift, flexible and scalable” support to ease immediate pressures and build long-term resilience. The assistance will include quick-disbursing budgetary support and expanded trade and supply chain financing to ensure the continued import of essential commodities, including oil.

“This initiative builds on ADB’s strong experience in supporting Asia and the Pacific during times of global uncertainty,” Kanda noted.

According to an ADB statement, the bank has sufficient financial capacity to protect its ongoing and planned operations while scaling up emergency assistance in response to the needs of its member countries. This includes the use of its countercyclical lending buffer.

ADB is closely tracking global market trends and their impact on regional economies, particularly rising energy prices, inflationary pressures, and external balance challenges.

Recent ADB analysis shows that disruptions in shipping routes have already driven up transportation costs and delayed deliveries. Supply risks are also expanding beyond energy to critical industrial inputs such as petrochemicals and fertilizers, posing significant threats to agriculture and food production.

Economies heavily reliant on tourism and remittances are facing heightened vulnerabilities, while growing uncertainty is tightening financial conditions, putting pressure on currencies and capital flows across the region.

In response, ADB is preparing to roll out timely financial and technical support to help countries manage risks, maintain macroeconomic stability, and safeguard vulnerable populations.

The support package consists of two key components. The first involves rapid budgetary assistance through facilities such as the Countercyclical Support Facility to help governments address fiscal stress and protect livelihoods.

The second component is the Trade and Supply Chain Finance Program (TSCFP), which will assist the private sector in maintaining the flow of essential imports, including food and energy.

As part of this effort, ADB has decided to temporarily reinstate financing support for oil imports under the programme, acknowledging the severe impact of surging oil prices and supply disruptions on regional economies.

ADB said it has already initiated discussions with the most affected countries and will continue to coordinate with governments, development partners, and the private sector to ensure an effective and unified response.

Established in 1966, ADB is a multilateral development bank owned by 69 members, including 50 from Asia and the Pacific, committed to fostering sustainable, inclusive, and resilient growth across the region.