World Bank Approves Financing to Strengthen Saint Vincent and the Grenadines’ Economic Resilience and Disaster Preparedness
Media Release Courtesy The World Bank
WASHINGTON — The World Bank Board of Executive Directors approved yesterday US$40 million for the Second Fiscal Reform and Resilience Development Policy Credit with Catastrophe Deferred Drawdown Option (Cat DDO) for Saint Vincent and the Grenadines. The quick-disbursing operation supports the country’s program to strengthen fiscal sustainability and enhance climate and disaster resilience to future shocks. It also supports Saint Vincent and the Grenadines’ response to the COVID-19 pandemic. A $20 million Cat DDO component provides a contingent line of financing in case of future natural or health-related disasters.
“This operation supports the efforts of Saint Vincent and the Grenadines to maintain fiscal resilience and protect lives and livelihood during the COVID-19 pandemic, which has led to severe socio-economic impacts.”
"The contingent financing component protects people against the effects of a natural disaster and helps the country become more disaster-resilient,” said Tahseen Sayed, World Bank Country Director for the Caribbean.
Saint Vincent and the Grenadines has been affected by loss of economic activity due to the COVID-19 prevention measures. The country is also at high risk of natural hazards, especially hurricanes. This new financing supports reforms that strengthen the legal and institutional frameworks for disaster risk management, protect jobs and livelihoods, and enhance fiscal resilience. The operation also supports reforms to protect the country’s coastal and marine assets by supporting sustainable use of natural resources.
This is the second in a series of two fiscal resilience development policy credits for Saint Vincent and the Grenadines. The financing, which is from the International Development Association (IDA), is interest-free with a maturity of 40 years, including a grace period of 10 years. The Cat DDO funds will be available to be partially or fully drawn down after a declared emergency within the next three years and it can be renewed for an additional three years.
World Bank Group COVID-19 Response:
The World Bank Group, one of the largest sources of funding and knowledge for developing countries, is taking broad, fast action to help developing countries strengthen their pandemic response. We are increasing disease surveillance, improving public health interventions, and helping the private sector continue to operate and sustain jobs. Over the next 15 months, we will be deploying up to $160 billion in financial support to help countries protect the poor and vulnerable, support businesses, and bolster economic recovery, including $50 billion of new IDA resources in grants or highly concessional terms.
