The government of the Philippines has drawn $80 million to help in the recovery from super typhoon Rai (Odette) from the World Bank supported catastrophe contingent line-of-credit it has in place through a Catastrophe-Deferred Drawdown Option arrangement, dubbed the CAT-DDO 4.
As we reported more than one week ago, the Philippines had put the World Bank on notice for its catastrophe contingent line of credit, through the CAT-DDO instrument.
The financing facility is designed to provide up to US $500 million of capital to the Philippines government, in order to help it manage the financial impacts of natural or man-made disasters and disease outbreaks. The CAT-DDO can be triggered, or activated, on a state of emergency declaration.
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