Managing Vulnerability to Natural Disasters and Financing in Costa Rica
DPL with Cat DDO:
Terms and Product Structure
Drawdown/
Fund
Availability
Volume/
Optionality
Repayment
Terms
☐
ப
☐
Provides immediate liquidity after a natural disaster resulting in a declaration
of state of emergency
Full loan amount is available for three years, renewable up to four times with
RVP approval, for a total maximum drawdown period of 15 years
Amounts repaid during the disbursement period will be available for subsequent
disbursements
Macro framework reviewed at commitment and at renewal
A disaster risk management program has to be implemented in accordance with
Bank standards
Maximum size of 0.25% of GDP or the equivalent of USD 500 million
(exceptions possible for small countries on case-by-case basis)
The client can choose among the same conversion options
(interest rate, currency) that are available for IBRD loans.
Repayment terms can be determined at the time of commitment or drawdown
Repayment schedule will commence from date of drawdown
Each drawdown may have different repayment schedules
Pricing
Same interest rate structure as regular IBRD loans
But higher fees: 0.50% front-end fee; 0.25% renewal fee
17View entire presentation