The Asian Development Bank (ADB) has announced that it is prepared to provide up to US 1.75 billion in additional financing support to the Philippines to help manage the economic impacts of the ongoing Middle East conflict.
The proposed support package includes additional policy-based and countercyclical lending, along with potential trade finance assistance if required. The financing is intended to help the Philippine government manage fiscal pressures and continue support measures under its Unified Package for Livelihoods, Industry, Food, and Transport programme. Current measures include fuel subsidies, excise tax reductions on selected oil products and financial assistance for transport workers, farmers, fishers and repatriated overseas Filipino workers. The funding is in addition to approximately USD 2 billion in policy-based loans already being prepared for the Philippines this year.
ADB is also working with Philippine government agencies on long-term resilience initiatives covering domestic fertilizer security, social protection, clean energy, energy efficiency and mass transit investments aimed at reducing vulnerability to fuel-price shocks. The Philippines has been significantly affected by the Middle East conflict due to its dependence on imported oil, fertilizers and global commodities, prompting the government to declare a national energy emergency.