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27 Feb 2021, 07:10 HRS IST
  • PTI
  • Donors agree replenishment of more than USD 4 bn for ADB grant funds

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20:37 HRS IST

New Delhi, Sep 17 (PTI) Asian Development Bank (ADB) on Thursday said donors have agreed to replenishment in excess of USD 4 billion for the Asian Development Fund (ADF) and Technical Assistance Special Fund (TASF) for the four-year period from 2021 to 2024.

The total size of the replenishment represents a 7 per cent increase in comparison to the previous replenishment, which covered the 2017?2020 period, the statement from multilateral funding agency said.

Total resources are allocated between ADF 13 and TASF 7 about USD 3.5 billion and about USD 0.5 billion, respectively, it said.

Of the total replenishment size, more than USD 2.3 billion, or 58 per cent, will be funded by contributions from 30 donors including two new donors Azerbaijan and the Philippines, it said.

The remaining USD 1.7 billion, or 42 per cent, will be funded by internal resources, including net income transfers from ADB's ordinary capital resources and income from ADF's liquidity investment, it added.

The statement further said that the total replenishment size is expected to increase further as three more donors confirm their pledges.

ADF is the largest special fund of ADB and finances grant operations in its poorest and most vulnerable members. The fund is replenished every four years.

"We highly appreciate our donors' support for ADF 13 and TASF 7, even as their own economies are under pressure from the heavy health and economic toll of the coronavirus disease (COVID-19) pandemic," said ADB President Masatsugu Asakawa.

"Our assistance will be critical in responding to the COVID-19 crisis and building an inclusive and sustainable recovery in the poorest and most vulnerable countries of the region," he said.

The COVID-19 pandemic has taken a devastating toll in terms of human lives and health, jobs, growth, and economic progress in Asia and the Pacific. Gains in reducing poverty are threatened, inequalities will increase, and progress against the Sustainable Development Goals (SDGs) are likely to be set back, especially in low income countries which include fragile and conflict-affected situations (FCAS) and small island developing states (SIDS), it said.?

To help these countries cope with the crisis and ensure robust sustainable and inclusive recovery, ADF grants together with ADB's concessional loans will deliver more than USD 16 billion?in assistance to the poorest and most vulnerable members in 2021?2024, it said.

The replenishment meeting was held on the eve of the second stage of ADB's 53rd Annual Meeting of the Board of Governors, held this year over two days in a virtual and abbreviated format due to the COVID-19 pandemic.

Other events held on September 16 included a meeting of the Governors of Pacific Developing Member Countries, an ADB Institute webinar on the Economic Impacts of COVID-19 in Asia, and the 15th informal meeting of the South Asian Association for Regional Cooperation Finance Ministers.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members?49 from the region.

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