Masato Kanda: ADB can deploy funding within first day of crisis

A new mechanism introduced by the Asian Development Bank (ADB) allows developing member countries to access financing on the first day of a crisis, ADB President Masato Kanda said on Sunday.

According to Report's correspondent in Samarkand, speaking at the ADB Insight event during the 59th Annual Meeting of the ADB Board of Governors in Samarkand, Kanda said the bank had become the first multilateral development bank to announce a financial support package in response to the Middle East crisis.

"The package includes several instruments. One of them is completely new - the Rapid Reprogramming and Resource Deployment Option, or 3RDO," Kanda said.

"In essence, this involves reallocating funds from the existing sovereign operations portfolio. This allows us to mobilize financing literally overnight - on the very first day of a crisis. We are already receiving relevant requests and are technically ready to respond promptly," he noted.

Kanda said one of the key priorities was ensuring uninterrupted imports of essential goods, including energy resources, food and medicines.

"The ADB"s Trade and Supply Chain Finance Program, which supports the private sector, is being used effectively here. We can provide financing within 24 to 48 hours. This time, as an exception, oil imports are also being supported," he said.

"We have already received numerous applications, and significant funds have been directed to the private sector," the ADB chief added.

Kanda also said the bank was helping governments expand fiscal space to maintain essential public services and support vulnerable populations.

"Our budget support through quick-disbursing loans, including program and countercyclical instruments, has proven highly effective," he said.