ADB Prepares Aid Package for Iran Conflict Effects for Asia-Pacific Countries
Jakarta, CNBC Indonesia - The Asian Development Bank (ADB) will disburse a financial support package to help its members, including developing countries, maintain stability from the economic and financial impacts of the conflict in the Middle East.
ADB President Masato Kanda stated that the support package consists of trade and supply chain financing to secure imports of essential goods, including oil.
“ADB will provide rapid, flexible, and targeted assistance to help countries manage immediate pressures and strengthen long-term resilience, particularly rapid budget support as well as trade and supply chain financing to secure imports of essential goods, including oil,” said ADB President Masato Kanda, quoted from an ADB announcement on Wednesday (25/3/2026).
“This is based on our strong track record in supporting Asia and the Pacific through periods of global uncertainty,” he added.
ADB stated that it has sufficient resources to protect existing and planned operations while expanding emergency support according to the needs of developing countries, including utilising its countercyclical loan reserves.
ADB also emphasised that it is closely monitoring global market developments and their potential implications for economies across Asia and the Pacific, particularly regarding energy price volatility, inflation pressures, and current account balances.
ADB’s latest analysis shows that disruptions to shipping routes have increased delivery costs and times, while supply risks are extending to energy and key industrial inputs such as petrochemicals and fertilisers, with serious implications for agriculture and food production.
According to ADB, economies reliant on tourism and remittances face increasingly complex vulnerabilities beyond this initial shock. Furthermore, the conflict is heightening instability and tightening financial conditions across the region, thereby pressuring currencies and capital flows.
In response to the uncertain global situation, ADB is ready to deploy timely financial and technical support to help developing countries manage risks, maintain macroeconomic stability, and protect vulnerable populations.
ADB has prepared two activities under its financial support programme application for developing countries to maintain economic stability amid global turbulence.
First, rapid budget support disbursement to assist developing countries facing increased fiscal pressures, particularly the use of the bank’s Countercyclical Support Facility to help governments stabilise their economies and mitigate the impact of shocks on the most at-risk lives and livelihoods.
Second is ADB’s Trade and Supply Chain Finance Programme (TSCFP), which supports the private sector to ensure that imports of essentials, including energy and food, continue to flow.
ADB has decided to reactivate support for oil imports under this programme specifically for this limited period. This decision acknowledges that economies and societies across the region are severely affected by the rapid surge in oil prices and supply chain disruptions.