Seven multilateral development banks pledge coordinated support to address economic impacts of Middle East conflict

Seven multilateral development banks pledge coordinated support to address economic impacts of Middle East conflict

(IN BRIEF) Seven multilateral development banks, including the European Investment Bank, have pledged coordinated support to help countries and businesses manage the economic fallout from the Middle East conflict. The institutions said they are preparing measures to address disruptions affecting energy markets, food security, trade routes and financing conditions. Planned support includes emergency budget assistance, trade and supply-chain financing, liquidity support for businesses, technical assistance and investments aimed at strengthening long-term economic resilience. The MDBs also emphasized the importance of close coordination with governments and development partners as the regional and global economic situation continues to evolve.

(PRESS RELEASE) LUXEMBOURG, 18-May-2026 — /EuropaWire/ — Seven major multilateral development banks (MDBs), including the European Investment Bank, have issued a joint statement outlining plans to support countries and businesses affected by the ongoing conflict in the Middle East and its broader economic consequences.

In the statement released from Paris, the MDBs said they are responding to requests from governments and clients facing a range of interconnected challenges linked to disruptions in energy and fertilizer markets, trade routes and global supply chains. According to the institutions, these pressures are contributing to inflation, food security concerns, fiscal imbalances, employment challenges and tightening financing conditions across several economies.

The development banks said they are uniquely positioned to combine financing, policy support, private sector instruments and technical expertise to help countries manage short-term shocks while also strengthening long-term economic resilience. The institutions emphasized that support measures will be delivered in accordance with each bank’s individual mandate, strategy and operational framework.

Among the key priorities identified by the MDBs is safeguarding access to essential goods such as energy, food and agricultural inputs for economies most exposed to market volatility. Planned actions include expanding trade and supply-chain financing mechanisms to maintain access to critical imports while supporting efforts to diversify supply sources.

The banks also signaled readiness to provide fast-disbursing budget support to governments facing mounting fiscal pressures, particularly where rapid intervention is needed to protect vulnerable populations and maintain essential public services. The institutions stressed, however, that emergency support should remain compatible with long-term economic resilience and fiscal sustainability objectives.

Support for the private sector forms another major component of the coordinated response. The MDBs said they plan to provide working capital, liquidity support and advisory services to businesses affected by market instability, including micro, small and medium-sized enterprises, utility companies and public sector clients. The aim is to help firms manage volatility while preserving employment and economic activity.

In addition, the institutions highlighted plans to deliver policy advice and technical assistance focused on targeted and temporary support measures for households and sectors most impacted by the crisis. The banks also intend to support reforms aimed at strengthening economic governance, domestic resource mobilization, job creation and resilience to future shocks.

Longer-term investment priorities identified in the statement include strengthening energy diversification, improving connectivity infrastructure and supporting projects that enhance overall economic resilience.

The MDBs added that they will continue closely monitoring developments, including emerging food security risks, to ensure early warning systems and operational responses remain coordinated and responsive to changing conditions. The institutions said they will continue working with governments, development partners and the private sector to scale support as needed.

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SOURCE: European Investment Bank