The ADB Contingent Disaster Loan which is part of their policy-based lending, is a loan provided by the ABD which is linked to a disaster.

A key feature of Contingent Disaster Financing is that it supports essential policy reforms to strengthen disaster preparedness that are to be completed before a natural disaster occurs. Once a CDF is approved for a country, it remains active until a disaster occurs. The country can then quickly access the approved financing to help relieve fiscal constraints for urgent relief and recovery efforts and avoid disruptive reallocations from priority budget programs.

The ADB Contingent Financing Grant is a grant made available upon a soft trigger (for instance, declaration of state of emergency) with a disbursement-linked repayment schedule.

The ADB Contingent Financing Loan is a loan made available upon a soft trigger (for instance, declaration of state of emergency) with a disbursement-linked repayment schedule.

The ADB Emergency Assistance Grant is a standard emergency assistance grant provided by the ADB.

The ADB Emergency Assistance Grant is a standard emergency assistance grant provided by the Asian Development Fund (ADF), which provides assistance to ADB’s lower-income developing member countries.

The ADB Emergency Assistance Loan is a standard emergency assistance loan provided by the ADB.

The ADB Emergency Assistance Loan is a standard emergency assistance loan provided by the Asian Development Fund (ADF), which provides assistance to ADB’s lower-income developing member countries.

Grant provided by the Asian Tsunami Fund (ATF), which was established to respond to the special circumstances surrounding the developing member countries (DMCs) that were stricken by the effects of the tsunami on December 2004. The fund provides ADB with a dedicated source of grant financing to support priority rehabilitation and reconstruction needs on a multi-sector basis.

The objective of this fund is to pool and deliver emergency grant financing promptly and effectively to affected DMCs for technical assistance (TA) and investment projects to support reconstruction, rehabilitation and associated development activities following the tsunami disaster.

The ADB Normal Asian Development Fund (ADF)/Ordinary Capital Resources (OCR) development loan is a standard development loan provided by the ADB.

The African Disaster Risk Financing Programme(ADRiFi) supports eligible countries to access risk transfer services through premium support for parametric weather insurance offered by African Risk Capacity. Between 2019 and 2023, ADRiFi will support premium financing: until the 4th year of participation, a country will receive premium support of up to 50% of the country’s annual premium, and from the 5th year onward, countries will be in a better position to fully finance their premiums from their national budgets and maintain sustained domestic resource allocation for insurance premium. ARC insurance allows for pay-outs being disbursed automatically when pre-defined risk thresholds are exceeded.

AfDB Emergency Liquidity Facility (ELF) is a short-term emergency finance support instrument. This US$1.5 billion facility provides financial support to eligible clients in exceptional cases, including disasters. Proposals for the use of the resources will be considered by the AfDB Board within ten working days.

AfDB Long-term Relief Assistance Operations offer long term nature loans for rehabilitation and reconstruction operations that aim to repair the damage caused by natural or man-made disasters. For instance, repairs and reconstruction of damaged infrastructure and equipment, assistance in the revival of economic activities and social services, rehabilitation or reconstruction of roads, bridges, water and sewerage systems, schools, hospitals, or industrial and agricultural complexes. The focus is to bring economic and social infrastructures back to pre-disaster levels. These operations would also include preparedness activities that enable a country to forestall or prepare itself to better withstand emergency situations.

Long term nature grants provided to fragile states that include rehabilitation and reconstruction operations that aim to repair the damage caused by natural or man-made disasters. For instance, repairs and reconstruction of damaged infrastructure and equipment, assistance in the revival of economic activities and social services, rehabilitation or reconstruction of roads, bridges, water and sewerage systems, schools, hospitals, or industrial and agricultural complexes. The focus is to bring economic and social infrastructures back to pre-disaster levels. These operations would also include preparedness activities that enable a country to forestall or prepare itself to better withstand emergency situations.

The emergency relief operations of the AfDB’s Special Relief Fund are grants characterized by the need for prompt remedial actions to save and protect lives, salvage property and minimize the destruction of basic infrastructure. They are of a short-term nature, lasting from a few weeks to a few months.

Emergency funds provided by the African Disaster Risk Financing Programme (ADRiFi), a programme that aims to enhance the resilience and response to climate shocks in African countries.

In its capacity as a regional risk pool, the African Risk Capacity (ARC) allows participating countries to pool their country-specific risk into a single, better diversified portfolio, which results in a substantial reduction of premium costs. ARC is a Specialized Agency of the African Union established to help African governments improve their capacities to better plan, prepare, and respond to extreme weather events and natural disasters.

ARC Replica is a parametric (index) insurance product offered by ARC Ltd to World Food Program and other humanitarian partners as an approach to expand climate risk insurance coverage to more people and improve the effectiveness of emergency humanitarian response. ARC Replica Coverage allows UN agencies and other humanitarian actors to match ARC country insurance policies. By matching country policies, international resources would be used more cost-effectively through participation in ARC’s government-led risk management system while doubling the coverage of climate risk insurance. Humanitarian agencies would purchase replica insurance policies, thus doubling the level of coverage in each participating country.

Structure: The CCRT has two windows: (i) a Catastrophe Containment window, to provide assistance in containing a public health disaster; and (ii) a Post-Catastrophe Relief window, to provide exceptional assistance in the wake of a catastrophic natural disaster. The windows have different purposes, qualification criteria, and assistance terms.

Catastrophe Containment window:

Qualification: There are two alternative qualifying cases of public health disasters. The first concerns a life-threatening epidemic that has spread across several areas of the afflicted country, causing significant economic disruption, and has the capacity to spread or is already spreading to other countries. Significant economic disruption is defined by at least: (i) a cumulative loss of real GDP of 10 percent; or (ii) a cumulative loss of revenue and increase of expenditures equivalent to at least 10 percent of GDP. The second case concerns a life-threatening global pandemic that is inflicting severe economic disruption across the IMF membership and is creating balance of payments needs on such a scale as to warrant a concerted effort to support the poorest and most vulnerable countries through substantial additional grant support and debt service relief. To qualify for the support, the afflicted country should put in place appropriate macroeconomic policies to address the balance of payments needs.

Debt service relief: Eligible low-income countries that are hit by public health disasters as defined above may receive up-front grants for an initial tranche covering eligible debt falling due to the IMF within a period not exceeding six months. Additional tranches would be approved provided the CCRT has sufficient resources, for a period of up to two years from the date of the initial decision to grant relief.

Post-Catastrophe Relief window:

Qualification: A catastrophic natural disaster that has (i) directly affected at least one-third of the population; and (ii) destroyed more than a quarter of the country’s productive capacity, as estimated by early indications such as destroyed structures and impact on key economic sectors and public institutions or caused damage deemed to exceed 100 percent of GDP.

Debt flow relief: Eligible low-income countries hit by catastrophic disasters as defined above would receive debt flow relief on their debt service to the IMF falling due in the two years following the disaster.

Debt stock relief: Full cancellation of a country’s stock of debt to the IMF is also possible in cases where the disaster has created substantial and long-lasting balance of payments needs and where the resources freed up by debt stock relief are critical for meeting these needs. This would typically only be the case if the country faced a very high debt burden. Debt stock relief would be conditional on concerted debt relief efforts by the country’s official creditors and availability of resources in the CCRT.

The first multi-country risk pool and regional catastrophe fund, Caribbean Catastrophe Risk Insurance Facility (CCRIF) provides parametric insurance, which disburses funds based on the occurrence of a predefined level of hazard and impact.

Largest pool of concessionary funding for the CDB, providing funds for disaster response.

Standard emergency assistance grant provided by the CDB.

The Exogenous Shock Policy-Based Loan is an instrument to provide resources for financing needs that arise from external and natural hazards shocks that have a significant economic and social impact.

Loan of up to Up to USD 750,000 automatically provided to all CDB borrowing member countries for immediate disaster response.

Contingent Emergency Response Component (CERC) of a World Bank project is a contingent financing tool that allows for quick disbursement of uncommitted balances from existing IPFs in the event of a crisis or emergency. The CERC is prepared as a project component during the original project’s preparation (pre-planning) and activated without needing to restructure the original project. Many Bank-financed projects already have a CERC, although these can be added to existing projects for an imminent or actual emergency (such as COVID-19). Most CERCs are set up as zero-component, that is, no funding is earmarked to this component in the project. CERCs allow funds to be redirected from other parts of the project to cover emergency response needs as long as those expenditures are eligible under the project.

The Emergency Response Coordination Centre (ERCC) supports a coordinated and quicker response to disasters both inside and outside Europe using resources from the countries participating in the EU Civil Protection Mechanism.

Standard IADB contingent loan linked to a disaster.

IADB’s contingent credit line that provides immediate liquidity.

Standard IADB contingent loan linked to a disaster

Standardized decentralized institutional structure that provides a revolutionary solution for the most efficient transfer of insurable risks from the governments to the international financial markets. Through it, each participant country will be able to:
• Mitigate the financial impact of natural disaster events.
• Strengthen growth stability in their economies by transferring the risk to the international insurance and capital markets.
• Obtain efficient financial coverage of extraordinary public expenditures during emergencies immediately after a catastrophic disaster.

Rapid access to undisbursed IDA investment project balances. The Immediate Response Mechanism (IRM) complements longer-term emergency response tools available to IDA countries, such as the Crisis Response Window, offering them financial support within weeks rather than months of an emergency. The inclusion of contingent emergency response components in selected existing and/or future investment projects will facilitate the rapid disbursement of funds.

In the case of crises, notably natural disasters and economic shocks, IDA would provide immediate financing in support of recovery efforts, such as the activation or scaling up of safety nets to mitigate the impact on vulnerable groups, repair or restoration of basic physical assets, protection of critical development spending such as on health and education, and creation of programs to jump-start economic activity. The IRM will also provide an additional platform for a dialogue with IDA clients on crisis planning and disaster risk mitigation.

Grants provided to Red Cross/Crescent National Societies (rather than governments) for emergency relief and all activities which meet immediate needs caused by sudden, slow-onset or imminent disasters, including monitoring and evaluation.

Application guidelines:https://media.ifrc.org/ifrc/wp-content/uploads/sites/5/2020/07/20200511_DREF_Guidelines_ONLINE-_OPT_FINAL-1.pdf

Loans provided to Red Cross/Crescent National Societies (rather than governments) for emergency relief and start-up response to sudden, slow-onset or imminent disasters.

Application Guidelines: https://media.ifrc.org/ifrc/wp-content/uploads/sites/5/2020/07/20200511_DREF_Guidelines_ONLINE-_OPT_FINAL-1.pdf

Medium-term financing for protracted balance of payments (BoP) problems. The Extended Credit Facility (ECF) provides financial assistance to countries with protracted balance of payments problems. The ECF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of low-income countries (LICs), including in times of crisis. The ECF is the Fund’s main tool for providing medium-term support to LICs.

Longer term for serious medium-term balance of payments problems because of structural weaknesses that require time to address, the IMF can assist with the adjustment process under an Extended Fund Facility (EFF).

The Flexible Credit Line (FCL) was designed to meet the demand for crisis-prevention and crisis-mitigation lending for countries with very strong policy frameworks and track records in economic performance. This instrument was created as part of the process of reforming how the IMF lends money to countries that find themselves in a cash crunch, with the idea of tailoring its lending instruments to the diverse needs and circumstances of member countries. While none of these countries have so far drawn down on these lines, the FCL provides a valuable backstop and helps boost market confidence during the period of heightened risks.

The global financial crisis highlighted the need for effective global financial safety nets to help countries cope with adverse shocks. A key objective of recent lending reforms was to complement the traditional crisis resolution role of the IMF with more effective tools for crisis prevention. The Precautionary and Liquidity Line (PLL) is designed to flexibly meet the liquidity needs of member countries with sound economic fundamentals but with some limited remaining vulnerabilities which preclude them from using the Flexible Credit Line (FCL).

The Rapid Credit Facility (RCF) provides rapid concessional financial assistance with limited conditionality to low-income countries (LICs) facing an urgent balance of payments need. The RCF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis. The RCF places emphasis on the country’s poverty reduction and growth objectives. No programme-based conditionality

The Rapid Financing Instrument (RFI) provides rapid financial assistance to all member countries facing an urgent balance of payments need. The RFI was created as part of a broader reform to make the IMF’s financial support more flexible to address the diverse needs of member countries. The RFI has replaced the IMF’s emergency assistance policy and can be used in a wide range of circumstances.

Provide longer-term financing to strengthen economic resilience and sustainability by (i) supporting policy reforms that reduce macro-critical risks associated with climate change and pandemic preparedness, and (ii) augmenting policy space and financial buffers to mitigate the risks arising from such longer-term structural challenges.

The new SBA framework has expanded the range of high access precautionary arrangements (HAPAs), a type of insurance facility against very large potential financing needs. Precautionary arrangements are used when countries do not intend to draw on approved amounts, but retain the option to do so should they need it. In an economic crisis, countries often need financing to help them overcome their balance of payments problems. Since its creation in June 1952, the IMF’s Stand-By Arrangement (SBA) has been used time and again by member countries, and it is the IMF’s workhorse lending instrument for emerging and advanced market countries. The SBA was upgraded in 2009 along with the Fund’s broader toolkit to be more flexible and responsive to member countries’ needs. Conditions were streamlined and simplified, and more funds were made available up front. The new framework also enables broader high-access borrowing on a precautionary basis.

The Standby Credit Facility (SCF) provides flexible financial assistance to low-income countries (LICs) with short-term balance of payments needs. The SCF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of shocks or crisis.

JICA’s contingent loan linked to a disaster.

Grants extended under this program aim at mitigating the suffering of victims of all kinds of catastrophes around the world, including in Opec Fund for International Development (OFID) Member Countries. OFID emergency aid is channeled through specialized relief agencies, such as the IFRC, UNHCR, UNOCHA and the WFP.

The Pandemic Emergency Financing Facility (PEF) – a financing mechanism housed at the World Bank – is designed to provide an additional source of financing to help the world’s poorest countries respond to cross-border, large-scale outbreaks. The PEF complements the much larger role that IDA, the World Bank’s fund for the poorest countries, and other international organizations and donors play in financing outbreak response. The PEF’s design is unique in that payments can go directly to governments and pre-approved frontline responder organizations (such as WHO & UNICEF) and it can do so through either its cash window — or once triggered through its insurance window.

Pacific Catastrophe Risk Insurance Company (PCRIC)
Established under the World Bank Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), PCRIC provides a market based sovereign risk insurance to Pacific Island Countries. The Company also provide technical assistance to Pacific Island Countries (PICs) on disaster risk modeling and assessment. More broadly, the company advises PICs on integrated financial solutions for the reduction of their financial vulnerability to natural disasters.

Start Fund is a multi-donor pool fund managed solely by NGOs for NGOs, with delegated authority from its donors. The fund is designed to disburse rapid emergency funding within 72 hours of an alert. It covers smaller ‘under-the-radar’ emergencies which often received little or no media attention and therefore attract little or no public funding.

Risk-linked security instrument designed to mobilize money in case of a catastrophe such as a hurricane or earthquake. If the bond issuer suffers a loss from a particular pre-defined catastrophe, such as a hurricane or earthquake, their obligation to pay interest and/or repay the principal is either deferred or completely forgiven.

A contingent financing instrument (grant or loan) that provides immediate liquidity following a natural disaster. Funds become available for disbursement after the declaration of a state of emergency due to a natural disaster. Country must have a disaster risk management program in place, which the Bank will monitor on a periodic basis.

Standard loan or grant (depending on country’s circumstances) provided in addition to standard allocations when an exogenous shock occurs. The primary objective of the CRW is to provide IDA countries with additional resources that will help to respond to severe economic crises and major natural disasters and return to their long-term development paths. In case of natural disasters, the CRW targets events that are exceptionally severe. The additional CRW financing would complement UN efforts to provide emergency relief by supporting safety nets for affected populations and restoring basic physical assets that were destroyed by the disaster.

GRiF is a multi-donor trust fund (MDTF) managed and implemented by the World Bank, with initial contributions from the governments of Germany and the UK. GRiF provides grants imbedded as part of World Bank projects to pilot and scale up financial solutions that help countries be financial prepared to respond to climate shocks, disasters, and crises. World Bank projects with GRiF funds are already underway in a number of Commonwealth countries: Malawi, Mozambique, Sierra Leone, and Jamaica.