Asian Development Bank Announces a Massive Rescue Package
Last updated on April 17th, 2020
As more and more new cases of the coronavirus emerge, reports of different countries and regions going through a financial crisis are also coming out. Considering the crisis and recession that looms over the developing countries in Asia, the Asian Development Bank (ADB) has tripled the amount of quick-disbursing loans.
On Monday, the ADB rolled out a massive funding package of $20 billion to help developing countries in Asia overcome the economic fallout due to the COVID-19 pandemic.
With more than 1.8 million confirmed cases and over 113,675 deaths worldwide, the pandemic seems to continue and leave recession as its after-effect. Major countries in the Asia region have imposed a nationwide lockdown to tackle the situation, leading to loss of jobs and economic slowdowns.
In a video statement, the Asian Development Bank president, Masatsugu Asakawa said, “The scope and the scale of the crisis make it imperative for the ADB to expand its support.”
Asakawa said that the ADB will add $13.5 billion to the previous $6.5 billion package it announced last month as the economic impact of the pandemic is much more severe than previously predicted.
He also added that $2 billion will be injected to the private sector to support liquidity-starved small and medium enterprises, help companies cope with supply chain disruptions and rejuvenate trade financing. To ensure all of this and streamline the process, the ADB will make its lending terms “much more flexible”.
In its Asian Development Outlook report, released on April 3, the Asian Development Bank forecasted a downfall in the growth of the developing countries in Asia from 5.2 percent to 2.2 percent in 2020 – weakest in more than two decades.
Contrary to its last month’s prediction, the ADB now expects the global GDP to go as low as 2.3 percent to 4.8 percent.
“Fiscal policy, monetary policy and this kind of policy coordination among ourselves are very much needed for us to survive this very severe and unprecedented challenge,” Asakawa said.
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