The Department of Finance (DOF) stands ready to tap a $500 million credit line extended to the Philippines to support the government’s disaster relief and rehabilitation operations in areas affected by Typhoon Carina.
The World Bank’s Philippines Disaster Risk Management and Climate Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT-DDO5) provides the Philippine government with immediate access to funds in order to manage risks arising from climate change, natural disasters and disease outbreaks.
A presidential declaration of a state of calamity or a public health emergency is required to trigger the release of the funds under the standby credit facility.
“These funds will be immediately withdrawn and released once the President declares a state of calamity,” Finance Secretary Ralph Recto said.
“This will allow us to rapidly deliver critical services like healthcare, shelter and food to those affected by typhoon Carina as well as fund post-disaster emergency response, recovery and reconstruction efforts,” the finance chief said.
The CAT-DDO5 forms part of the Philippines’ Disaster Risk Financing Insurance strategy, which aims to maintain sound fiscal health at the national level, develop sustainable financing mechanisms for local government units and reduce the impact on the poorest and most vulnerable.
