News Release No. 38/12: CDB Grant for Haiti Catastrophe Risk Insurance Premium

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The Government of Haiti will get assistance from the Caribbean Development Bank (CDB) to pay its premium for the period June 1, 2012, to May 31, 2013, to the Caribbean Catastrophe Risk Insurance Facility (CCRIF). CDB's Board of Directors has approved a grant equivalent to USD 2.57 million for this purpose. CCRIF is a parametric insurance facility owned, operated and registered in the Caribbean for the Region's Governments. It is the world's first regional insurance fund. It began operations in 2007, and is an independent legal entity, registered as a fully capitalised legal entity in the Cayman Islands. CCRIF insures government risk and is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean Governments by quickly providing short-term liquidity when a policy is triggered. It is recognised that the payment of premiums is a recurrent expenditure, and should normally be provided for in national budgets. However, in view of the current social, economic and fiscal challenges being faced by Haiti, that country would be unable to pay its CCRIF premiums without external assistance. Insurance coverage for Haiti, triggered on a parametric basis, will provide some level of financial protection for a country already decimated by recent disasters.

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