Seven Multilateral Development Banks (MDBs) issued a joint statement in Paris on May 18, 2026, pledging coordinated support to countries and clients facing the compound effects of the conflict in the Middle East, according to a press release published by the European Investment Bank. The signatories are responding to requests for assistance amid disruptions to energy and fertilizer markets and trade routes. These shocks have generated spillover effects on inflation, food security, jobs, fiscal and external balances, and financing conditions. The MDBs underscored their unique ability to combine financing, policy support, private sector instruments, and technical expertise at scale. Their pledge aims to help countries manage shocks, preserve development gains, and strengthen long-term resilience.
The statement notes that, with the backing of their shareholders, the MDBs are providing assistance in line with their respective mandates, strategies, and operational models. Their responses are designed to offer immediate relief to the most vulnerable populations. They also aim to ensure the continuity of essential services during the crisis. At the same time, the institutions intend to continue laying the structural foundations for sustainable, resilient economies. The approach combines short-term mitigation with longer-term reform.
According to the statement, the MDBs will support access to essential goods such as energy, food, and agricultural inputs for the economies most exposed to shocks. This includes expanding trade and supply chain finance and supporting diversification. Fast-disbursing budget support will help governments under fiscal pressure mitigate the impact of shocks on those most at risk, while maintaining price signals through targeted support for poor and vulnerable households. Working capital, liquidity, and advisory services will be provided to firms, including micro, small and medium enterprises, utility companies, and other public sector clients. Investments will also be supported to enhance resilience through energy diversification and improved connectivity.
The MDBs emphasized that policy advice and technical assistance will focus on targeted and time-bound support measures for vulnerable households and the most affected sectors. Such measures aim to preserve incentives for efficient resource use and maintain medium-term fiscal sustainability. Reforms will also target stronger resilience, economic governance, job creation, and domestic resource mobilization.
“While client governments are under pressure to act swiftly in delivering support, it should be done without compromising their economies’ long-term resilience,” the statement reads.
Vigilant monitoring, including of emerging food security risks, was identified as key to ensuring early warning and operational coordination.
The MDBs confirmed they will continue to adapt and scale their responses in line with countries’ and clients’ needs. Close coordination among the institutions will guide implementation. They will also work with governments, development partners, and the private sector. The goal is to deliver fast, targeted, time-bound, and fiscally sustainable responses. The joint statement reinforces the MDBs’ collective commitment to addressing the consequences of the Middle East conflict.
