DHAKA, March 18, 2020 (BSS) – The Asian Development Bank (ADB) today
announced a $6.5 billion initial package to address the immediate needs of
its developing member countries (DMCs) as they respond to the novel
coronavirus (COVID-19) pandemic.
“This pandemic has become a major global crisis. It requires forceful
action at national, regional, and global levels,” said ADB President
Masatsugu Asakawa.
“With our developing member countries, we are formulating an aggressive set
of actions to combat the pandemic; to protect the poor, the vulnerable, and
wider populations across the region; and to ensure economies will rebound as
swiftly as possible. Based on close dialogue with our members and peer
institutions, we are deploying this $6.5 billion rescue package to meet the
immediate needs of our members.” said the ADB President.
Asawaka stressed that, “ADB stands ready to provide further financial
assistance and policy advice down the road whenever the situation warrants,
on top of the $6.5 billion package.”
The initial package includes approximately $3.6 billion in sovereign
operations for a range of responses to the health and economic consequences
of the pandemic, and $1.6 billion in non-sovereign operations for micro,
small, and medium-sized enterprises, domestic and regional trade, and firms
directly impacted.
ADB will also mobilize about $1 billion in concessional resources through
reallocations from ongoing projects and assessing possible needs for
contingencies. ADB will make available $40 million in technical assistance
and quick-disbursing grants.
To provide the support package to DMCs as quickly and flexibly as possible,
ADB will seek adjustment in its financing instruments and business processes.
Subject to approval by ADB’s Board of Directors, this will include faster
access to emergency budget support for economies facing severe fiscal
constraints, streamlined procedures for policy-based lending, and universal
procurement with flexible and faster processes.
The pandemic demands a coordinated response and strong collaboration among
countries and organizations.
The release said ADB will further strengthen its close collaboration with
the International Monetary Fund, the World Bank, regional development banks,
the World Health Organization, and major bilateral funding agencies including
the Japan International Cooperation Agency, as well as the US Centers for
Disease Control and private sector organizations, to ensure effective
implementation of its COVID-19 response.
Since its first COVID-19 response on February 7, 2020 ADB has already
provided more than $225 million to meet urgent needs of both governments and
businesses in DMCs.
ADB’s initial economic analysis and associated data files were published on
March 6, 2020 in ‘The Economic Impact of the COVID-19 Outbreak on Developing
Asia’.
It provided estimates of the impact on developing Asia-and on individual
economies and sectors in the region-through numerous channels, including
sharp declines in domestic demand, lower tourism and business travel, trade
and production linkages, supply disruptions, and health effects.
ADB will publish updated estimates of the economic impact of the pandemic
in its Asian Development Outlook 2020 to be released on 1 April 2020.