Asian Development Bank (ADB) President Masato Kanda has pledged up to USD1.75 billion in additional financing to help the Philippines cushion the economic fallout from the ongoing Middle East crisis. The commitment was made during a courtesy call on President Ferdinand R. Marcos Jr. at Malacañan Palace in Manila on Friday.
ADB Offers Comprehensive Support Package
Kanda informed Marcos that the ADB is prepared to extend policy-based and countercyclical lending, as well as trade finance, to assist the Philippines in managing fiscal pressures arising from the conflict. This new package is in addition to the USD2 billion in policy-based loans already being prepared for the country this year.
The ADB chief also reaffirmed the bank's support for measures aimed at mitigating the effects of oil supply disruptions and other external shocks on the Philippine economy.
Protecting Vulnerable Communities
"The Philippines is ADB's home and we see the strain this crisis is placing on Filipino families, workers, and businesses," Kanda said. "ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy's resilience."
The ADB noted that the Philippines remains highly exposed to global commodity disruptions due to its reliance on imported oil, fertilizers, and other essential goods.
Government Response and UPLIFT Program
In response to the Middle East crisis, President Marcos earlier declared a national energy emergency and ordered the implementation of the Unified Package for Livelihoods, Industry, Food and Transport (UPLIFT) program for vulnerable sectors. The UPLIFT package includes fuel subsidies, reduced excise taxes on select oil products, and cash assistance for transport workers, farmers, fishers, and repatriated overseas Filipino workers.
Long-Term Resilience Measures
The ADB is also coordinating with the Department of Agriculture and the Department of Social Welfare and Development on long-term resilience measures. These include fertilizer security, social protection programs, energy security, clean energy initiatives, energy efficiency projects, and mass transit investments designed to reduce the country's vulnerability to fuel price shocks.
Founded in 1966, the ADB is a leading multilateral development bank focused on promoting sustainable, inclusive, and resilient growth across Asia and the Pacific. Its Philippine headquarters is located in Mandaluyong City.
