The Philippine government is seeking up to $1.5 billion in emergency financing from the Asian Development Bank (ADB) to help cushion the economy from the fallout of the ongoing Middle East conflict, particularly rising oil prices and other external shocks, according to Finance Secretary Frederick Go.

“We have expressed our intent to tap the ADB’s Countercyclical Support Facility (CSF) in the amount of up to $1.5 billion to provide additional funding for response measures under the Uplift Framework and better address the ongoing impacts of the Middle East conflict,” Go said.

Distress caused by external shocks

The CSF was launched by ADB in 2009 to help developing member countries implement pro-poor fiscal measures during periods of economic distress caused by external shocks, such as global financial crises and pandemics.

Earlier this month, the multilateral lender unveiled a package of financial support measures for member economies affected by the conflict in the Middle East. The package includes access to the fast-disbursing CSF as well as the Trade and Supply Chain Finance Program (TSCFP).

“This includes assistance to vulnerable sectors in order to mitigate the impact of oil supply and other shocks,” Go added.

As of 12 June, ADB said governments across Asia had requested a total of $3 billion under the CSF and another $1 billion under the TSCFP.

Additional support

The request follows ADB’s earlier indication that it could extend up to $1.75 billion in additional support to the Philippines through policy-based and countercyclical lending facilities.

The proposed $1.75-billion financing package would be on top of the roughly $2 billion in policy-based loans already being prepared by the multilateral lender for the Philippines this year.

ADB president Masato Kanda previously said the institution stands ready to help the country protect vulnerable communities, manage fiscal pressures, and strengthen economic resilience amid the energy crisis.

“At this time of acute uncertainty and risk, we are deploying our full suite of crisis-response instruments — including budget support, trade finance, and a new mechanism to rapidly repurpose existing portfolio funds — to deliver the tailored and timely support our members need to safeguard their economies and communities,” Kanda said in an earlier statement.