Monday, August 19, 2019
04:41 AM (GMT +5)

Go Back   CSS Forums > General > News & Articles

News & Articles Here you can share News and Articles that you consider important for the exam

Reply Share Thread: Submit Thread to Facebook Facebook     Submit Thread to Twitter Twitter     Submit Thread to Google+ Google+    
LinkBack Thread Tools Search this Thread
Old Wednesday, March 05, 2008
Princess Royal's Avatar
Senior Member
Medal of Appreciation: Awarded to appreciate member's contribution on forum. (Academic and professional achievements do not make you eligible for this medal) - Issue reason: Best Moderator Award: Awarded for censoring all swearing and keeping posts in order. - Issue reason: Best Mod 2008
Join Date: Sep 2007
Location: K.S.A.
Posts: 2,103
Thanks: 868
Thanked 1,758 Times in 816 Posts
Princess Royal is a splendid one to beholdPrincess Royal is a splendid one to beholdPrincess Royal is a splendid one to beholdPrincess Royal is a splendid one to beholdPrincess Royal is a splendid one to beholdPrincess Royal is a splendid one to beholdPrincess Royal is a splendid one to behold
Default World Bank approves new catastrophe loan facility

World Bank approves new catastrophe loan facility

WASHINGTON - The World Bank on Tuesday launched a new catastrophe loan facility and revised an existing contingency credit line designed to help increase its business with middle-income countries.

The World Bank board on Tuesday approved the Catastrophe Risk Deferred Drawdown Option that will give middle-income countries access to emergency funds in the event of a natural disaster such as a hurricane or earthquake.

Countries stricken by disaster will be able to access funding of up to $500 million once a state of emergency is declared.

Countries may qualify for the loan facility if they have a hazard risk management program already in place that is monitored by the World Bank.

World Bank President Robert Zoellick said the facility was an example of how the institution could be useful to middle-income countries, a diverse group that includes fast-growing economic powerhouses like China.

In September, Zoellick cut the price the World bank charged on its loans and simplified a complex set of fees and waivers for emerging economies, which were increasingly tapping global capital markets for funding.

“These financial product enhancements reflect the World Bank Group’s commitment to using creative ways to expand resources for our country partners,” Zoellick said.
“As our client relationships with middle-income countries become more sophisticated, the World Bank is responding with development solutions that share knowledge, build markets and institutions, and provide capital,” he added.

pre-approved loan

The World Bank board separately also approved changes to its existing Deferred Drawdown Option (DDO), a pre-approved line of credit for countries which do not immediately need the funding but have access to it in the future in case of an unforeseen event.

Only two countries -- Chile and Latvia -- have ever tapped the facility since its launch in 2001. The instrument was unpopular because it was unclear whether the funding would still be available when the country needed it since disbursements were conditional on a World Bank review.

In addition, the loans were more expensive and charged a higher commitment fee as well as a surcharge for a longer maturity.

The changes now allow the World Bank to monitor a borrower’s economy on a continuous basis so that when the country needs funding, it can access the money quickly.

The funds may be drawn down at any time unless the World Bank notifies the borrower that one or more of the drawdown conditions are not met.

The changes also align the pricing of the loans with standard World Bank terms for middle-income countries.

Pamela Cox, World Bank vice president for Latin America, said such changes were attracting middle-income countries back into the bank’s fold and a DDO loan would soon be considered for Colombia and perhaps for Mexico in April.

“What you see in Latin America is that many countries with which we work have access to capital markets and also tend to have borrowing limits and they tend to have fiscal space issues. For them, the facility is interesting because it is an insurance product,” she said.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
alchemist by paulo choelo (int. best seller) dr.junaid References and Recommendations 27 Saturday, December 10, 2016 04:13 AM
Information about various International and Regional Organisation Saleeqa Batool Current Affairs Notes 7 Monday, August 31, 2009 05:31 PM
International Monetary Fund (IMF). Faraz_1984 Economics 0 Thursday, May 15, 2008 12:27 PM
The Globalization of World Politics: Revision guide 3eBaylis & Smith: hellowahab International Relations 0 Wednesday, October 17, 2007 03:13 PM
What Is The New World Order?? MUKHTIAR ALI International Relations 1 Monday, January 08, 2007 08:39 PM

CSS Forum on Facebook Follow CSS Forum on Twitter

Disclaimer: All messages made available as part of this discussion group (including any bulletin boards and chat rooms) and any opinions, advice, statements or other information contained in any messages posted or transmitted by any third party are the responsibility of the author of that message and not of (unless is specifically identified as the author of the message). The fact that a particular message is posted on or transmitted using this web site does not mean that CSSForum has endorsed that message in any way or verified the accuracy, completeness or usefulness of any message. We encourage visitors to the forum to report any objectionable message in site feedback. This forum is not monitored 24/7.

Sponsors: ArgusVision   vBulletin, Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.