Joint statement from 7 multilateral development banks in support of efforts to mitigate the impacts of the conflict in the Middle East

The signatory multilateral development banks (MDBs) are responding to requests for support from countries and their clients to mitigate the heterogeneous and cumulative repercussions of the conflict in the Middle East, including disruptions to energy and fertilizer markets and trade routes, which generate indirect effects on inflation, food security, employment, fiscal and external balances, and financing conditions.

The signatory multilateral development banks (MDBs) are responding to requests for support from countries and their clients to mitigate the heterogeneous and cumulative impacts of the conflict in the Middle East, including disruptions to energy and fertilizer markets and trade routes, which are generating indirect effects on inflation, food security, employment, fiscal and external balances, and financing conditions.

MDBs are uniquely positioned to mobilize large-scale financing, policy support, private sector instruments, and technical expertise to help countries manage shocks, preserve development gains, and strengthen their long-term resilience. With the support of their shareholders, MDBs provide assistance in accordance with their respective mandates, strategies, and operating models.The MDB responses aim to provide immediate support by assisting the most vulnerable populations and ensuring the continuity of essential services, while continuing to lay the structural foundations for sustainable and resilient economies, particularly through:The support provided aims to preserve access to essential goods, such as energy, food, and agricultural inputs, for the economies most vulnerable to shocks. This includes expanding trade and supply chain finance to ensure continued access, as well as supporting diversification.
Fast-disbursing budget support is crucial to help governments cope with increased fiscal pressures while mitigating the impact of shocks on the living conditions and livelihoods of the most vulnerable populations. This mechanism helps maintain price signals through targeted support measures for poor and fragile households. While governments are under pressure to act quickly, this should not compromise the long-term resilience of their economies.The provision of working capital, liquidity, and advisory services to help businesses—particularly micro, small, and medium-sized enterprises (MSMEs)—as well as public services and other public sector actors, to absorb market volatility and preserve jobs. Policy advice and technical assistance regarding targeted and temporary support measures for vulnerable households and the most affected sectors, while maintaining incentives for the efficient use of resources and ensuring medium-term fiscal sustainability. Furthermore, support for reforms aimed at strengthening resilience, economic governance, job creation, and domestic resource mobilization.Support for investments aimed at strengthening resilience, including through the diversification of energy sources and improved connectivity.

In a rapidly evolving environment, close monitoring is essential, including of emerging food security risks, to ensure appropriate early warning systems and effective coordination of operational responses.

MDBs will continue to adapt and scale up their responses to meet the specific needs of countries and their clients. They will also strengthen their coordination and work with governments, development partners, and the private sector to ensure rapid, targeted, temporary, and fiscally sustainable responses.This declaration was signed by the following multilateral development banks (MDBs): the African Development Bank Group, the Asian Development Bank, the Council of Europe Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Inter-American Development Bank Group and the World Bank Group.