ADB offers up to $1.75 billion additional financing to Philippines for Middle East crisis impact

ADB President Masato Kanda has offered up to $1.75 billion in additional financing to the Philippines to manage economic fallout from the Middle East conflict, on top of around $2 billion in policy-based loans being prepared for 2026. The support includes policy-based lending, countercyclical financing, and trade finance to address oil price shocks and protect vulnerable communities.

Asian Development Bank (ADB) President Masato Kanda has announced that ADB is ready to provide up to $1.75 billion in additional financing to support the Philippines in managing the economic impact of the Middle East conflict, according to an official announcement. The Philippines has been hit hard by the conflict due to its heavy reliance on imported oil, fertilizers, and other global commodities, with the government declaring a national energy emergency and implementing the Unified Package for Livelihoods, Industry, Food, and Transport including fuel subsidies, excise tax reductions on some oil products, and cash assistance for transport workers, farmers, fishers, and repatriated overseas Filipino workers.

ADB is a multilateral development bank founded in 1966, owned by 69 members. The additional financing is on top of approximately $2 billion in policy-based loans being prepared for the Philippines this year. ADB has offered to support the government in managing fiscal pressures through additional policy-based and countercyclical lending of up to $1.75 billion, as well as trade finance if needed.

This development matters for the Philippines' economic resilience, where the crisis is placing strain on Filipino families, workers, and businesses. ADB is also working with government agencies to protect vulnerable people and strengthen longer-term resilience, including advisory support to the Department of Agriculture on domestic fertilizer security, assistance to the Department of Social Welfare and Development on social protection, and support for energy security, clean energy, energy efficiency, and mass transit investments to reduce exposure to fuel-price shocks.

For the Asian economy, the financing aims to protect vulnerable communities, manage fiscal pressures, and strengthen the economy's resilience. Stakeholders including overseas Filipino workers, transport workers, farmers, fishers, and businesses stand to benefit from the assistance. ADB will act swiftly to support the government as the Philippines is ADB's home.