Seven multilateral development banks (MDBs), including the Manila-based Asian Development Bank and the World Bank Group (WBG), pledged coordinated support measures to help countries manage the economic fallout from the ongoing conflict in the Middle East.

In a joint statement released in Paris, France, on Monday, May 18, the seven MDBs said they are responding to requests for support from countries and clients affected by disruptions to energy and fertilizer markets, trade routes, and broader financing conditions triggered by the conflict.

The seven lenders warned that the crisis has already generated spillover effects on inflation, food security, jobs, fiscal and external balances, and global financing conditions.

Besides the ADB and the Washington-based WBG, the five other signatories to the statement were the African Development Bank Group (AfDB), the Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the Inter-American Development Bank (IDB) Group.

“MDBs are uniquely positioned to combine financing, policy support, private sector instruments, and technical expertise at scale to help countries manage shocks, preserve development gains, and strengthen long-term resilience,” they said.

According to the statement, the MDBs’ response measures will focus on preserving access to essential goods such as energy, food, and agricultural inputs, particularly for economies most exposed to supply shocks. This includes expanding trade and supply chain finance and supporting diversification initiatives.

The lenders also committed to extending fast-disbursing budget support for governments facing mounting fiscal pressures, while providing targeted assistance for poor and vulnerable households affected by inflation and higher living costs.

In addition, the MDBs said they would provide working capital, liquidity support, and advisory services for firms, including micro, small, and medium enterprises (MSMEs), utility companies, and public sector clients struggling to absorb market volatility and protect jobs.

They added that they would continue offering policy advice and technical assistance aimed at strengthening economic resilience, governance, domestic resource mobilization, and job creation while supporting investments in energy diversification and connectivity projects.

“In the rapidly changing context vigilant monitoring is key, including of emerging food security risks, to ensure appropriate early warning and coordination of operational responses,” the MDBs said.

The lenders said they would continue coordinating closely with governments, development partners, and the private sector to ensure “fast, targeted, time-bound, and fiscally sustainable responses” as the situation evolves.