The Asian Development Bank is preparing a major financial package for the Philippines as the country weathers the economic fallout from the ongoing Middle East conflict, with ADB President Masato Kanda personally delivering the offer during a meeting with President Ferdinand R. Marcos Jr. at Malacañan Palace.
The multilateral lender has offered up to $1.75 billion in additional policy-based and countercyclical lending, with trade finance also on the table if necessary. The amount comes on top of roughly $2 billion in policy-based loans already being lined up for the Philippines this year.
Kanda framed the offer as a direct response to the hardship the crisis has imposed on ordinary 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.”
The Philippines has been particularly exposed to the conflict’s ripple effects, given its dependence on imported oil, fertilizers, and other global commodities. In response, the government declared a national energy emergency and rolled out the Unified Package for Livelihoods, Industry, Food, and Transport — a relief program covering fuel subsidies, excise tax cuts on select oil products, and cash assistance for transport workers, farmers, fishers, and repatriated overseas Filipino workers.
Beyond the lending commitments, ADB said it is coordinating with Philippine government agencies on structural measures aimed at reducing the country’s long-term vulnerability to fuel-price shocks. These include advisory support to the Department of Agriculture on domestic fertilizer security, assistance to the Department of Social Welfare and Development on social protection programs, and investment support for clean energy, energy efficiency, and mass transit infrastructure.
