Asian Development Bank pledges $14 billion in loans

The Asian Development Bank pledged on Tuesday to provide $14 billion in loans over four years to improve food security in poor countries in the Asia-Pacific amid rising global prices and climate change. The bank, which provides loans and grants to the poorest countries in the Asia-Pacific region, said the funding will target, among other things, food production and distribution, as well as projects aimed at mitigating the negative effects of climate change.

In detail, this type of financing is expected to reach $3.3 billion this year and $10.7 billion from 2023 to 2025, said the bank, which brings together 49 members – from the Cook Islands in the Pacific to Kazakhstan in Central Asia – and which until now has committed about two billion dollars in loans per year to projects related to food security.

Food insecurity threatens to undo decades of development progress in Asia and the PacificAsian Development Bank President Masatsugu Asakawa told a virtual press conference. At present, there are many factors that explain “worsening of the situation” Masatsugu Asakawa stressed, referring in particular to Russia’s invasion of Ukraine and the Covid-19 pandemic, which has disrupted supply chains and helped push food prices towards “record levels“.

and “we must also remember that the current food security crisis will worsen even more if we fail to tackle climate changeadded Masatsugu Asakawa, thinking this match would bewon or lost in Asia and the PacificAccording to him, a little over a billion people in the regionlack healthy food due to poverty and high food prices“.

The institution’s announcement comes after the bank recently lowered its 2022 growth forecast for the region to 4.3% from its April projection of 5.2%, particularly concerned about the effects of increasingly restrictive monetary policies in many countries to curb inflation or even repeated confinements in China. of a so-called “zero covid“. The bank also raised its inflation forecast for 2022 from 3.7% to 4.5%.

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