World Bank rolls out catastrophe lending initiative

The World Bank has given its nod to a lending program that will allow developing countries to reach into emergency funds when calamities - such as natural disasters - strike them down. The Catastrophe Risk Deferred Drawdown Option will provide affected countries with as much as USD500 million, if they agree to come under a hazard risk management program monitored by the bank. “These financial product enhancements reflect the World Bank Group’s commitment to using creative ways to expand resources for our country partners,” World Bank President Robert Zoellick said. “As our client relationships with middle-income countries become more sophisticated, the World Bank is responding with development solutions that share knowledge, build markets and institutions, and provide capital.”

Source: World Bank approves catastrophe loan facility (Reuters)

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