World Bank to lend PH $600M for pandemic...

PAGE 1 administration imposed mobility restrictions to prevent the spread of the virus.

Catastrophe insurance

As it is, the World Bank noted that the new loan program will aid the development of the country’s catastrophe insurance market.

This relatively-new financial instrument could prevent the public from sliding into poverty if natural disasters strike. As it is, catastrophe insurance products are designed to protect households, assets, and businesses against natural disasters.

The Southeast Asian archipelago sits within the Pacific Ring of Fire, which leaves the Philippines vulnerable to a host of natural disasters annually. Likewise, the developing nation is at the receiving end of the climate crisis, as its wildly vulnerable to the effects of a warming planet.

Diop noted that catastrophe insurance will enable the national government to use its limited resources to support communities and Filipinos who need it most.

On the other hand, the development policy loan will also expand financing access for the

public and businesses through digital technologies.

The World Bank indicated that development policy loans are sources of quick-disbursing assistance to countries pursuing reforms. As it is, this type of loan supports policy and institutional changes to foster an environment for equitable growth within a country’s development priorities. That said, the World Bank stood as the country’s third-largest source of official development assistance in 2021 according to data from the National Economic and Development Authority. (Philstar.com)