The Asian Development Bank (ADB) has offered up to $1.75 billion in additional financing support to help the Philippines cushion the economic impact of the ongoing Middle East conflict.

ADB president Masato Kanda conveyed the commitment during a recent meeting with President Ferdinand Marcos Jr. at Malacañang Palace, saying the assistance would be extended through policy-based and countercyclical lending, as well as trade finance support if needed.

“The Philippines is ADB’s home, and we see the strain this crisis is placing on Filipino families, workers, and businesses,” Kanda said.

“ADB will act swiftly to support the government to protect vulnerable communities, manage fiscal pressures, and strengthen the economy’s resilience,” he added.

The proposed financing package comes on top of around $2 billion in policy-based loans already being prepared by the multilateral lender for the Philippines this year. ADB said the assistance aims to help mitigate the effects of oil supply disruptions and other economic shocks amid the country’s continuing energy concerns.

The Metro Manila-based lender previously reported that the Philippines was among the hardest hit by the Middle East conflict’s impact on global oil markets. The country was also among the first to declare a national state of emergency amid the crisis, which has taken a heavy toll on the local economy.

Domestic pump prices surged to as high as P150 per liter in April, pushing headline inflation to its highest level in three years. The peso also slid to record lows, reaching a trough of P61.64 per US dollar on 14 May, likewise driven by oil supply volatility and broader geopolitical disruptions.

ADB added on Friday that it is coordinating with Philippine government agencies on programs involving fertilizer security for the Department of Agriculture and social protection initiatives for the Department of Social Welfare and Development.

The lender also said it continues to support investments in energy security, clean energy, energy efficiency, and mass transit systems to reduce the country’s exposure to fuel-price volatility.