MANAGING THE FINANCIAL COST OF DISASTERS
Lessons for IDA from the UK Government’s approach to explicit contingent liabilities. This paper draws on learning from the UK’s Contingent Liability Approval Framework to consider how IDA could better support the systematic identification and management of contingent disaster liabilities for its client countries.
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We explore the key issues in developing a methodology for calculating pre-arranged funding, including what sort of funding would ‘count’ as pre-arranged, and starts to unpack the challenges of calculating this. This note supports the dialogue on this issue, and as a contribution to donors and IFIs who are considering how best to calculate pre-arranged funding.
The Future of Crisis Financing: A Call to Action sets out a new vision for international crisis financing, based on planned approaches and appropriate financing packages and instruments.
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This paper proposes an innovative approach to financing contingent liabilities using IDA to purchase a contingent loan with hard triggers, on concessionary IDA terms. The payout is used to buy down the cost of a commercial loan (such as IDA’s Scale-Up Facility) to concessionary IDA terms.
Drawing on examples from around the world, this paper argues that civil society organisations play a vital role in ensuring that crisis financing approaches are designed and delivered effectively. It concludes that in IDA19, CSOs should be more actively engaged in its crisis financing work.