ADB announces $6.5b package to help members fight COVID-19
The Asian Development Bank (ADB) yesterday announced an initial package of $6.5 billion to help address the immediate needs of its member countries in response to the fallout of the coronavirus pandemic.
"This pandemic has become a major crisis worldwide. It requires forceful action at the national, regional and global levels," ADB President Masatsugu Asakawa said in a statement.
The ADB is working with its developing member countries to formulate an aggressive plan of action to tackle the pandemic, protect the poor and vulnerable and also ensure that the economies bounce back as soon as possible.
Based on dialogues with member countries and peer institutions, the ADB has deployed this $6.5 billion rescue package to help its members recover from the coronavirus outbreak.
"On top of the $6.5 billion package, the ADB stands ready to provide further financial assistance and policy advice whenever warranted by the situation," Asakawa said.
The initial package includes about $3.6 billion for sovereign operations, ranging from healthcare to the economic impact left by the pandemic.
Some $1.6 billion is allocated for non-sovereign operations for micro, small, and medium-sized enterprises, domestic and regional trade and firms that were directly affected by the virus.
The ADB will also mobilise about $1 billion in concessional resources through reallocations from ongoing projects while also assessing the possible need for contingencies. A further $40 million will be available for technical assistance and quickly-disbursed grants.
The ADB will adjust its financing instruments and business processes to support the member countries as quickly as possible while maintaining flexibility.
Subject to approval from the ADB's board of directors, the package will include fast access to emergency budget support for economies facing severe fiscal constraints. It will also feature streamlined procedures for policy-based lending, and universal procurement.
The ongoing COVID-19 pandemic demands a coordinated response from all countries and organisations.
Therefore, the ADB will further strengthen its ties with the International Monetary Fund, World Bank, regional development banks, World Health Organization and major bilateral funding agencies, including the Japan International Cooperation Agency as well as the US Centre for Disease Control and private sector organisations, to that end.
Since first responding to the outbreak on February 7 this year, the ADB has already provided more than $225 million to help numerous governments and businesses of developing member countries meet their needs, according to the statement.
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