Financing deployed by the Asian Development Bank’s (ADB) trade and supply chain division has surged 50% in value year-on-year in the wake of the Middle East conflict, its director has said.
The dramatic drop in vessel traffic through the Strait of Hormuz and a series of attacks on energy-related infrastructure in the region have had a significant impact on economies across Asia, with supply shortages driving up the cost of food and energy.
“There is a big increase in demand for trade finance from ADB, largely because credit limits that are available in developing Asia are getting squeezed because of higher commodity prices,” said Steven Beck, who has led the ADB’s trade finance unit for more than 20 years.
“Financial institutions have country and counterparty limits to support trade, and now that commodity prices have, in some cases, doubled, it’s eating away at…
