ADB offers PH additional $1.75B to manage impact of Middle East conflict

The Asian Development Bank (ADB) has offered up to $1.75 billion in additional financing for the Philippines to manage the economic impact of the Middle East conflict, as the country remains in a national state of energy emergency.

According to the ADB, the $1.75 billion will be made through policy-based and countercyclical lending, along with trade finance if needed, to provide assistance to vulnerable Filipinos and mitigate the impact of the oil supply and other shocks.

The amount, offered by ADB president Masato Kanda during a meeting with President Ferdinand Bongbong Marcos Jr. in Malacañang, is on top of around $2 billion in policy-based loans already being prepared for the Philippines this year.

“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” Kanda was quoted as saying in a statement.

“ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience,” he added.

The ADB said it is also working with Philippine government agencies to provide support such as domestic fertilizer security to the Department of Agriculture (DA), and assistance on social protection to the Department of Social Welfare and Development (DSWD).

It said it is also providing support for energy security, clean energy, energy efficiency, and mass transit investments to reduce the country’s exposure to fuel-price shocks.

The Philippines, a net importer of fuel, has been impacted by the conflict in the Middle East, prompting President Ferdinand “Bongbong” Marcos Jr. to declare a state of national energy emergency in March.

The Luzon and Visayas grids will be placed on yellow and red alerts anew on Friday afternoon to evening, due to the forced outage of several power plants on top of the increased demand amid the hot dry season. — RSJ, GMA News