The Manila-based Asian Development Bank (ADB) has launched a new emergency financing mechanism to help developing economies respond more quickly to crises, as geopolitical tensions in the Middle East continue to strain global markets.

The new facility, called the Rapid Resource Reprogramming and Deployment Option (3RDO), allows countries to repurpose existing ADB funds for immediate relief and early recovery — significantly reducing the time needed to access financing during emergencies.

“The Middle East conflict is a stark reminder that our region’s exposure to geopolitical and economic shocks can escalate with sudden intensity,” ADB president Masato Kanda said.

“Speed is crucial to protect the economy and the most vulnerable during a crisis, and this new tool gives our developing members the means to act in days, not weeks or months, when their people need support the most.”

The 3RDO targets the critical early phase of a crisis, when governments must secure essential goods, maintain public services and stabilize their economies. Eligible countries may tap up to 10 percent of their undisbursed ADB portfolio — or 25 percent for small island states — with funds deployable within 24 hours once trigger conditions are met.

Broader package supported

The initiative complements a broader support package the ADB has already rolled out in response to the Middle East conflict, which has heightened risks across Asia and the Pacific.

The bank earlier said it is ready to provide “rapid, flexible, and scalable assistance” to help countries manage immediate pressures and strengthen long-term resilience, including fast-disbursing budget support and trade and supply chain financing to ensure access to critical imports such as food and energy.

ADB has also reactivated support for oil imports under its trade finance program on an exceptional basis, acknowledging the impact of surging oil prices and supply disruptions on regional economies.

The lender warned that the conflict is already increasing uncertainty, tightening financial conditions, and putting pressure on currencies and capital flows, particularly in economies reliant on tourism and remittances.