BE PREPARED: IDB providing funds to deal with natural disasters in the Caribbean

first_img Share Share NewsRegional BE PREPARED: IDB providing funds to deal with natural disasters in the Caribbean by: – March 11, 2011 Tweet Sharing is caring!center_img Share 37 Views   no discussions WASHINGTON, CMC – The Inter-American Development Bank (IDB) said Thursday that at the request of the governments of several member countries in the region, it has developed a financial risk management for natural disasters, aimed to help the countries be better prepared to deal with emergencies caused by catastrophic natural events.The IDB says its approach is focused in developing tailor-made integrated programmes to help the countries’ governments to better manage these financial risks, through the implementation of different innovative financing instruments and mechanisms, such as the Contingent Credit Facility and the Natural Disaster Insurance Facilities.“Currently, the Bank is working with 13 member countries to support their efforts to improve their disaster risk management capability and efficiency,” the IDB said in a statement. “Through the mentioned facilities, it is expected to provide during 2011 more than US$500 million in financing to help the region meet extraordinary expenditures that may arise during emergencies caused by natural disasters of severe or catastrophic magnitude. The IDB said that it has already approved a US$100 million loan for the Dominican Republic under its Contingent Credit Facility.During this year, the Bank will consider further contingent loans for Peru, Ecuador, Costa Rica, Panama and Honduras, totalling US$500 million. In addition, the IDB is expected to provide a US$24 million loan to structure and launch an Insurance Facility for Catastrophic Natural Disaster Emergencies for the Dominican Republic. This insurance facility plans to provide the government with a five-year US$100 million coverage for earthquakes and hurricanes of catastrophic magnitude.Resources from the IDB contingent loans are rapidly disbursed upon Bank’s verification that a natural disaster of severe to catastrophic intensity has occurred in the territory of the countries. The proceeds will allow governments to cover extraordinary expenditures that occur during the emergency, in the immediate aftermath of a major event; including emergency medical equipment, vaccines and medication, facilities and equipment for temporary shelters, food for displaced people and livestock, emergency workers to assist victims, and short-term leasing of energy, transportation and communications equipment and facilities.Financial disaster preparedness is a growing concern in Latin America and the Caribbean. Last year the region saw devastating earthquakes in Chile and Haiti and an active hurricane season that impacted Central America and Mexico. In addition, the La Niña-related weather phenomenon has brought severe flooding to Venezuela, Colombia and Brazil, among others.Source: Cana Newslast_img read more