ADB Earmarks $500M For Food Crisis

Manila, Philippines (AHN) - Philippines-based Asian Development Bank (ADB) announced on Tuesday it has earmarked some $500 million on standby facility to provide immediate assistance to its member-nations hardest hit by the rising global food prices.

Haruhiko Kuroda, ADB president issued a statement saying, "I am pleased to announce that ADB will provide 500 million dollars (320 million euros) as immediate budgetary support to the hardest hit countries so that they can bring food to the tables of the vulnerable, poor and needy."

According to Kuroda, the standby facility would be used to help member-nations cushion the impact of rising food prices which could add pressure to fiscal burdens.

He added, "We will also double our lending to Agricultural and Natural Resources, including rural infrastructure, to over $ 2.0 billion over the next one year."

Early projections made by the ADB puts at least one billion people in Asia to be affected by the soaring food prices. Asia is home to two-thirds of the world's poor.

At the same time, Kuroda said the global food crisis could setback decades of economic gains in the Asia-Pacific region.

It also warns of unrest in the region if the problem is not abated.