Seven multilateral development banks pledged to strengthen support for countries affected by the economic fallout from the ongoing Middle East conflict, citing mounting pressures on energy markets, food security, inflation, and global financing conditions.
In a joint statement issued on 18 May in Paris, the multilateral lenders — composed of the Manila-based Asian Development Bank (ADB), African Development Bank Group, Council of Europe Development Bank, European Bank for Reconstruction and Development, European Investment Bank, Inter-American Development Bank Group, and the World Bank Group — said they were responding to requests from governments and clients seeking assistance to address disruptions in energy and fertilizer markets, trade routes, and broader spillover effects on jobs, fiscal positions, and external balances.
The institutions said the conflict has created “heterogeneous and compound impacts” across economies, particularly those heavily exposed to external shocks.
The multilateral development banks (MDBs) said they were prepared to combine financing, policy support, private sector instruments, and technical expertise to help countries manage economic disruptions, preserve development gains, and strengthen long-term resilience.
“MDBs are uniquely positioned to combine financing, policy support, private sector instruments, and technical expertise at scale to help countries manage shocks, preserve development gains, and strengthen long-term resilience,” the statement read.
The lenders said response measures would focus on immediate relief while continuing to support long-term structural reforms and resilience-building initiatives.
Among the measures identified were support programs aimed at preserving access to essential goods such as energy, food, and agricultural inputs, particularly for economies most vulnerable to supply disruptions.
The MDBs also committed to expanding trade and supply-chain finance facilities to help ensure continued access to critical goods while supporting diversification efforts. The institutions said they were likewise prepared to extend fast-disbursing budget support to governments facing heightened fiscal pressures in order to cushion the impact of economic shocks on vulnerable sectors.
The lenders emphasized that support measures should remain targeted and time-bound while preserving long-term economic resilience and maintaining market price signals, underscoring the need to support investments that would strengthen resilience through diversified energy sources and improved connectivity.
“MDBs will continue to adapt and scale their responses in line with countries’ and clients’ needs. MDBs will coordinate closely, and work with governments, development partners, and the private sector to ensure fast, targeted, time-bound, and fiscally sustainable responses,” the statement added.
For its part, ADB recently offered up to $1.75 billion in additional financing support to help the Philippines cushion the economic impact of the ongoing Middle East conflict, which comes on top of some $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.
