Joint Statement by Seven Multilateral Development Banks Pledging Support to Address Impacts of the Middle East Conflict

PARIS - The signatory Multilateral Development Banks (MDBs) are responding to requests for support from countries and clients to help address the heterogeneous and compound impacts from the conflict in the Middle East, including disruptions to energy and fertilizer markets and trade routes, with spillover effects on inflation, food security, jobs, fiscal and external balances, and financing conditions.

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. With the support of their shareholders, MDBs are providing assistance in line with our respective mandates, strategies, and operational models.

MDBs’ responses aim to provide immediate relief by supporting the most vulnerable populations and ensuring the continuity of essential services, while continuing to lay the structural foundations for sustainable resilient economies, including through:

• Support to preserve access to essential goods, like to energy, food, and agricultural inputs for economies most exposed to shocks, including through the expansion of trade and supply chain finance to ensure continued access, and support for diversification.
• Fast-disbursing budget support to help governments facing heightened fiscal pressures mitigate the impact of shocks on the lives and livelihoods of those most at risk, while maintaining price signals, through targeted support to protect poor and vulnerable households. While client governments are under pressure to act swiftly in delivering support, it should be done without compromising their economies’ long-term resilience.
• Provision of working capital and liquidity as well as advisory services to help those firms, including micro, small and medium enterprises, utility companies, and other public sector clients that need to absorb market volatility and to protect jobs.
• Policy advice and technical assistance on targeted and time-bound support measures for vulnerable households and the most affected sectors while preserving incentives for efficient resource use, maintaining medium-term fiscal sustainability, alongside support for reforms aimed at strengthening resilience, economic governance, job creation and domestic resource mobilization.
• Supporting investments to enhance resilience, including through diversification of energy sources and improved connectivity.

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.

MDBs will continue to adapt and scale their responses in line with countries’ and clients’ needs. MDBs will coordinate closely, and work with governments, development partners, and the private sector to ensure fast, targeted, time-bound, and fiscally sustainable responses.