By Brian Campued
The Asian Development Bank (ADB) has committed $1.75 billion in additional financing to support the Philippine government’s efforts in managing fiscal pressures and the economic impact of the Middle East conflict.
In a courtesy call to President Ferdinand R. Marcos Jr. in Malacañan Palace on Friday, ADB President Masato Kanda offered to extend additional policy-based and countercyclical lending, as well as trade finance, if needed, to help the Philippines provide further assistance to vulnerable Filipinos and mitigate the impact of the oil supply and other external shocks on the country’s economy.
The offer was on top of the $2 billion in policy-based loans already being prepared for the Philippines this year.
Kanda likewise assured the Philippines of continued support for programs aimed at strengthening economic resilience, sustainable development, and improved opportunities for Filipinos.
“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.”
With the Philippines’ heavy reliance on imported essential commodities, such as oil and fertilizers, the ADB is also coordinating with the Department of Agriculture and Department of Social Welfare and Development on long-term resilience measures, including domestic fertilizer security, social protection programs, energy security, clean energy, energy efficiency, and mass transit investments, to lessen the country’s vulnerability to fuel price shocks.
In response to the Middle East crisis, the Philippines was one of the first countries to declare a national energy emergency, with President Marcos Jr. directing the implementation of a more coordinated whole-of-government approach under the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT).
The ADB previously commended the Philippine government’s swift response to protect Filipinos from the impacts of the global oil shock, citing its efforts to grant fuel subsidies and cash assistance for transport workers, farmers, fisherfolk, and repatriated overseas Filipino workers as well as reduced excise taxes on select oil products.
-jpv
