WBG Catastrophe Deferred Drawdown Option (Cat DDO)

Published by Disaster Risk Financing on

WBG Catastrophe Deferred Drawdown Option (Cat DDO)

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.

Provided by

Coverage

various

Instrument type

Loan

Eligibility

All IBRD-eligible borrowers — including Blend countries — upon meeting approval criteria.

Cat DDO’s provide Governments a contingent line of finance, which becomes available when the appropriate trigger is met. Traditionally, the Cat DDO, has a ‘soft’ trigger, which is negotiated between the Government and the World Bank during preparation of the instrument. The two pre-requisites for approval of the instrument are: (i) the country must have an adequate macroeconomic policy framework at preparation; and (ii) the country must have a satisfactory disaster risk management program in place with a well-defined results framework to implement policies and actions in the DRM program, which the Bank monitors periodically.

Intended for disaster response

Yes

Available to

Antigua and Barbuda, Belize, Botswana, Cameroon, Dominica, Fiji, Grenada, India, Jamaica, Kenya, Kingdom of eSwatini, Malaysia, Mauritius, Namibia, Nauru, Nigeria, Pakistan, Papua New Guinea, Saint Lucia, Seychelles, South Africa, Sri Lanka, St Kitts and Nevis, St Vincent and The Grenadines, and Trinidad and Tobago

Contact

For further information, please contact:

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