The Philippines will now have immediate access to funding following major natural disasters, thanks to a new World Bankcatastrophe financing facility.
Under the scheme, the Philippine government will have the option to draw funds from a $500 million contingent line of credit to provide immediate emergency assistance to those affected by natural calamities. This is while other funding sources such as bilateral aid are being mobilized.
The option will also allow the country to rebuild affected social infrastructure such as schools, roads, water supply and electricity more quickly.
The Philippines is among the world’s most vulnerable countries to natural disasters. On average, more than 1,000 lives are lost every year, most from typhoons.
In 2009, tropical storm Ketsana and typhoon Parma drove about 500,000 Filipinos into poverty.
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