ADB provides $13.5-B soft loans, grants for DMCS’ fight vs Covid-19
THE Manila-based Asian Development Bank (ADB) has provided an additional $13.5 billion in concessional lending and grants to its developing member-countries (DMCS) to combat the coronavirus 2019 (Covid-19) pandemic.
In a statement, ADB said this brings its total Covid-19 pandemic response to $20 billion. This includes the $6.5 billion which was already announced in March.
Last week, ADB said the pandemic will have a global impact of 2.3 percent to 4.8 percent of GDP. Regional growth is forecast to slow to 2.2 percent in 2020 from 5.2 percent last year.
“Our expanded and comprehensive package of assistance, made possible with the strong support of our Board, will be delivered more quickly, flexibly, and forcefully to the governments and the private sector in our developing membercountries to help them address the urgent challenges in tackling the pandemic and economic downturn,” ADB President Masatsugu Asakawa said.
The new package includes the establishment of a Covid-19 Pandemic Response Option under ADB’S Countercyclical Support Facility.
Around $13 billion will be provided through the facility to help DMC governments mitigate impacts of the Covid-19 pandemic, particularly on the poor and the vulnerable.
ADB said grant resources will also continue to be deployed quickly for providing medical and personal protective equipment and supplies from expanded procurement sources.
Some $2 billion from the $20 billion package, ADB said, will be allocated to the private sector. Loans and guarantees will be provided to financial institutions to rejuvenate trade and supply chains.
ADB also said enhanced micro finance loans and guarantee support will be implemented alongside direct financing of companies responding to, or impacted by, Covid-19.
The facility, ADB said, aims to help liquidity-starved smalland medium-sized enterprises, including those run by female entrepreneurs.
“This pandemic threatens to severely set back economic, social, and development gains in Asia and the Pacific, reverse progress on poverty reduction, and throw economies into recession,” Asakawa said.
The response package includes a number of adjustments to policies and business processes that will allow ADB to respond more rapidly and flexibly to the crisis.
These include measures to streamline internal business processes, widen the eligibility and scope of various support facilities, and make the terms and conditions of lending more tailored.
All support under the expanded package will be provided in close collaboration with international organizations, including the International Monetary Fund; World Bank Group; World Health Organization, Unicef, and other UN agencies; and the broader global community.