IMF Prepares Emergency Aid for Countries Affected by Iran War Spillover

The International Monetary Fund (IMF) is conducting a review of which countries worldwide might need emergency assistance if the Israel-Hamas conflict escalates into a regional war involving Iran. Citing Reuters and Bloomberg, a report states that the IMF has asked its country desks to share analyses on various areas, from the status of current account balances to potential funding needs. This assessment is reportedly focused on countries with active IMF financing programmes. The IMF’s analysis aims to identify vulnerabilities and prepare potential responses if the Middle East conflict disrupts global economic stability. The Asian Development Bank (ADB) is taking similar steps, stating it will channel a financial support package to help its members, including developing countries, maintain stability from the economic and financial impacts of the Middle East conflict. ADB President Masato Kanda said the support package consists of trade and supply chain financing to secure imports of essential goods, including oil. “The ADB will provide rapid, flexible, and targeted assistance to help countries manage immediate pressures and strengthen long-term resilience, particularly rapid-disbursing budget support as well as trade and supply chain financing to secure imports of essential goods, including oil,” ADB President Masato Kanda said, quoted from the 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. The ADB said it has sufficient resources to protect existing and planned operations while expanding emergency support according to the needs of developing countries, including utilising its counter-cyclical lending reserves. The ADB has also prepared two activities under its financing support programme for developing countries to maintain economic stability amid global turbulence. First, rapid budget support to help developing countries facing increased fiscal pressures, particularly using the bank’s Countercyclical Support Facility to assist governments in stabilising their economies and reducing the impact of shocks on the most vulnerable lives and livelihoods. Second, the ADB’s Trade and Supply Chain Finance Programme (TSCFP), which supports the private sector to ensure the flow of essential imports, including energy and food.