DOF to tap up to $1.5B in ADB support for oil shock response

MANILA, Philippines – The Marcos administration is looking to tap the Asian Development Bank’s (ADB) crisis-response facility in a bid to secure additional funding for the government’s response to the economic fallout from the Middle East war, according to the Department of Finance (DOF).

Finance Secretary Frederick Go told reporters that the government plans to request up to $1.5 billion from the ADB’s Countercyclical Support Facility (CSF), a rapid-disbursing financing window designed to help countries respond to major external shocks.

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“We have expressed our intent to tap the ADB’s counter-cyclical support facility in the amount of up to $1.5 billion to provide additional funding to support the response measures under the Uplift Framework in order to better respond to the ongoing impacts of the Middle East conflict,” Go said.

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“This includes assistance to vulnerable sectors in order to mitigate the impact of oil supply and other shocks,” he added, noting that the government still has to undergo the necessary process to secure the amount.

The CSF was first launched by the 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 announced a package of financial support measures for member economies affected by the war in the Middle East. The package includes access to the fast-disbursing CSF as well as the Trade and Supply Chain Finance Program (TSCFP).

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

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“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, from large to small, need to safeguard their economies and communities,” ADB president Masato Kanda earlier said in a statement.

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The Uplift Framework, or the Unified Package for Livelihoods, Industry, Food, and Transport, was established in March following the declaration of a state of national energy emergency.

The framework adopts a whole-of-government approach to addressing the economic impact of the conflict, including ensuring the steady supply of fuel and essential goods, maintaining public transport and other critical services, facilitating the timely delivery of government assistance and formulating longer-term strategies to strengthen economic resilience. INQ

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