You are here

IDB to help region better deal with natural disasters

Thursday, March 17, 2011

The Inter-American Development Bank (IDB) has announced that, as a result of requests of several Latin America and Caribbean countries, it has developed a financial risk management approach for natural disasters, aimed to help the countries be better prepared to deal with emergencies caused by catastrophic natural events.

The IDB said 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,” an IDB statement said. “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 has already approved a $100 million loan for the Dominican Republic and during the year it will consider further contingent loans for Peru, Ecuador, Costa Rica, Panama and Honduras, totaling 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.

The proceeds of the IDB contingent loans 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.

Last year the region saw devastating earthquakes in Chile and Haiti and an active hurricane season. In addition, the La Niña-related weather phenomenon has brought severe flooding to Guyana, Venezuela, Colombia and Brazil, among others.


User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff.

Guardian Media Limited accepts no liability and will not be held accountable for user comments.

Guardian Media Limited reserves the right to remove, to edit or to censor any comments.

Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.

Before posting, please refer to the Community Standards, Terms and conditions and Privacy Policy

User profiles registered through fake social media accounts may be deleted without notice.