MANILA, PHILIPPINES (20 April 2020) — The Asian Development Bank (ADB) has announced a $6 million grant from its Pacific Disaster Resilience Program (Phase 2) to help finance the Government of the Federated States of Micronesia’s (FSM) response to the novel coronavirus disease (COVID-19) pandemic.
A state of emergency was declared on 14 March in FSM and the public health emergency and closure of its borders have put pressure on the country’s health system and economy. ADB’s assistance will complement the FSM government’s $15 million economic stimulus package that includes direct subsidization of salaries to ensure people’s welfare.
“The $6 million grant for FSM will help support the country’s response to this health emergency,” said ADB Director General for the Pacific Leah Gutierrez. “This immediate financing will allow the FSM government to respond quickly to emerging challenges.”
This is ADB's second round of assistance for FSM to mitigate the pandemic. On 7 April, ADB announced a $470,000 grant for FSM from its Asia Pacific Disaster Response Fund to help finance the country’s response to the pandemic.
The Asian Development Outlook 2020 report forecast that the economic outlook for the North Pacific economies is mostly weak this fiscal year from the impact of the pandemic, with cautious recovery anticipated in 2021. FSM’s gross domestic product growth is projected to slow to 1.6% in 2020, according to the report.
FSM’s grants complement ADB’s $20 billion package—announced on 13 April—to support member economies as they cope with the pandemic. ADB is engaged in discussions with all its developing member countries, including those in the Pacific, on how best to utilize this support.
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.