The Board of Executive Directors of the World Bank yesterday approved 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.
A release from the Bank says 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.
Tahseen Sayed, the World Bank Country Director for the Caribbean said 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.
Saint Vincent and the Grenadines has been affected by the loss of economic activity due to the COVID-19 prevention measures. The country is also at high risk of natural hazards, especially hurricanes.
The new financing supports reforms that strengthen the legal and institutional frameworks for disaster risk management, protects jobs and livelihoods, and enhances fiscal resilience. The operation also supports reforms to protect the country’s coastal and marine assets by supporting the sustainable use of natural resources.