By Ruth Abbey Gita-Carlos
MANILA – The Asian Development Bank (ADB) has committed USD1.75 billion in additional financing to help the Philippines cushion the economic impact of the Middle East conflict.
The offer was pitched by ADB president Masato Kanda during a courtesy call on President Ferdinand R. Marcos Jr. at Malacañan Palace in Manila on Friday.
Kanda told Marcos that the ADB is ready to extend additional policy-based and countercyclical lending, as well as trade finance, if necessary, to help the Philippines manage fiscal pressures stemming from the crisis in the Middle East.
The proposed package was on top of the USD2 billion in policy-based loans already being prepared for the Philippines this year.
Kanda also pledged continued support for measures aimed at mitigating the effects of oil supply disruptions and other external shocks on the Philippine economy.
“The Philippines is ADB’s home and we see the strain this crisis is placing on Filipino families, workers, and businesses,” he said.
“ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures and strengthen the economy’s resilience,” Kanda added.
ADB noted that the Philippines remains highly exposed to global commodity disruptions because of its dependence on imported oil, fertilizers and other essential goods.
In response to the Middle East crisis, 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.
ADB is also coordinating with the Department of Agriculture and Department of Social Welfare and Development on long-term resilience measures, including fertilizer security, social protection programs, energy security, clean energy initiatives, energy efficiency projects, and mass transit investments designed to lessen the country’s vulnerability to fuel price shocks.
Founded in 1966, 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. (PNA)
