World Bank approves $500m loan to manage disasters


World-Bank-techcabalTHE World Bank on Wednesday approved a new contingent line of credit support worth $500 million to help the Philippines manage risks posed by natural disasters.

The World Bank said its board of executive directors approved the Second Disaster Risk Management Development Policy Loan with a catastrophe-deferred drawdown option to provide $500 million to strengthen investment planning and regulations to reduce disaster risks and help manage the financial impacts when they strike.

World Bank country director for the Philippines Motoo Konishi said the Disaster Risk Financing and Insurance Strategy would strengthen the country’s capacity to manage disaster risks.
“If not managed well, disasters can roll back years of development gains and plunge millions of people into poverty,” said Konishi.