PH borrows $1.5 billion from ADB to soften blow of Middle East crisis

MANILA — The Philippines is borrowing about $1.5 billion to help soften the blow of the Middle East crisis on Filipino commuters, vulnerable sectors, and overseas Filipino workers.

In a statement, the finance department said Secretary Frederick Go signed a JPY236.64-billion financing agreement with the Asian Development Bank, which will support the government’s Unified Package for Livelihoods, Industry, Food, and Transport program.

UPLIFT helps ensure enough fuel and electricity supply, keeps public and commercial transport reasonably priced, gives targeted financial assistance to vulnerable groups, and supports the repatriation and reintegration of OFWs affected by the conflict.

“These interventions aim to ease pressure on household budgets, sustain livelihoods, and protect vulnerable Filipinos from the effects of global economic disruptions,” the department said.

In May, the ADB also offered the Philippines a $1.75-billion loan to help Filipinos amid rising food and fuel prices. 

Last month, it also announced that it is mobilizing a further $3 billion in tourism financing across Southeast Asia over the next three years.

The ADB has cut its 2026 growth outlook for the Philippines to 3.3 percent from 3.8 percent in July, as it noted that higher inflation and the prolonged Middle East conflict have weighed on consumption and investment.