The Cat DDO offers Grenada with contingent financing in case of herbal disasters while helping the country’s reform program to construct multi-sectoral resilience to catastrophe and climate risks. It is the first Cat DDO authorized for the Latin America and Caribbean Region financed by means of the International Development Association (IDA), the concessional financing arm of the World Bank. php website creation
“Catastrophic activities pose a large monetary shock to a small island country,”stated Tahseen Sayed, World Bank Director for the Caribbean. “The average estimated fee of damage from a disaster as a ratio to gross home product is six times higher for small states within the Caribbean than for large countries worldwide. The World Bank is providing comprehensive guide to Grenada’s efforts for better disaster preparedness, including through the innovative Cat DDO financing mechanism that may be straight away drawn all the way down to meet important financing desires after a catastrophe.” php website creation
Due to Grenada’s physical and financial vulnerability to disasters, building weather resilience is at the center of its policy time table and priorities. In 2017, Grenada also set up a Ministry of Climate Resilience, the Environment, Forestry, Fisheries, Disaster Risk Management and Information. The Cat DDO helps the country’s efforts for developing a comprehensive catastrophe chance financing strategy and reforms aimed at growing typical resilience, including strengthening disaster resilience in schools, formalizing coordination protocols for announcement of disasters, and including climate resilience criteria in public investments. php website creation
The Cat DDO funds may be drawn inside the case of an legit statement of an emergency, that can be related to a herbal disaster or a fitness outbreak. The line of credit will be available to be drawn down at any time within the next 3 years and may be renewed for an extra 3 years.
The operation complements the Grenada Second Fiscal Resilience and Blue Growth Development Policy Credit authorised in December, as both aim to decorate fiscal and climate resilience.
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