MILAN, Italy, May 5. We must be prepared for possible economic downturn, said President of the Asian Development Bank (ADB) Masato Kanda, addressing the business session of ADB Governors, Trend’s special correspondent reports from Milan.
“Trade tensions and market volatility present uncertainties. I am deeply concerned about the potential impact on the economies of our developing member countries and, most of all, on the poor and most vulnerable. We must be prepared for a possible economic downturn and heightened vulnerabilities.
We recognize the urgency to act swiftly and support our developing member countries through the effective and efficient use of our financial and technical resources. Maintaining macro-financial stability and deepening regional cooperation and integration are especially critical at this juncture,” he said.
Kanda noted that ADB is prepared to help its clients navigate current challenges and respond to shocks with assistance ranging from timely financing to debt management support and stability mechanisms.
“In addition to existing instruments and resources, such as countercyclical support financing, we are exploring new options to ease liquidity pressures and support countries’ financial stability.
Furthermore, to meet the rising demand for assistance from our developing member countries, our recent capital management reforms have increased our lending capacity by up to $100 billion in the next decade, equipping us with the financial firepower to scale up our operations by 50% over the next decade. In parallel, as challenges continue to grow in scope and complexity, we are implementing enhanced measures to amplify our development impact, without requiring additional resources from our donors,” ADB president said.
Kanda pointed out that it is now more important than ever to protect the poor and vulnerable.
“The historic $5 billion replenishment of the Asian Development Fund (ADF 14) and the Technical Assistance Special Fund (TASF 8) marks a powerful vote of confidence in our collective mission. We are very grateful for the generous support and trust granted to us,” he said.