The World Bank has approved USD 500 million in financing for Mexico through its first Catastrophe Deferred Drawdown Option (Cat DDO), providing rapid access to funds for natural disasters, climate impacts and public health emergencies. The financing supports disaster preparedness and gives the government an emergency credit line to respond without urgently reallocating its budget. The Cat DDO complements Mexico’s existing financial protection instruments, including catastrophe bonds and parametric insurance. It allows the government to access resources almost immediately when a disaster or health emergency occurs. The project has a three-year duration, with the possibility of extension. The support builds on Mexico’s progress in reducing disaster risks across infrastructure, housing, energy and health. With substantial territory and population exposed to hurricanes, floods, droughts and earthquakes, the project supports prevention policies aimed at limiting damage and disruptions that can cost households and businesses income and jobs.
World Bank approves USD 500 million for Mexico’s first catastrophe emergency credit line
The World Bank has approved USD 500 million for Mexico’s first Catastrophe Deferred Drawdown Option, an emergency credit line covering disasters and public health emergencies. The facility provides almost immediate access to funds without urgent budget reallocations, complementing catastrophe bonds and parametric insurance. The project runs for three years, with a possible extension, and supports disaster prevention and risk management.