The World Bank and Croatia’s Ministry of Finance signed an agreement for a Disaster Preparedness and Resilience Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO), providing EUR 100 million in contingent financing that can be rapidly mobilised after a natural disaster to support emergency response and resilient recovery. The operation is Croatia’s first Cat DDO and is intended to help manage the fiscal and social impacts of disasters. The reform programme is structured around three pillars: strengthening infrastructure management and institutional capacity for adaptation; sector reforms in energy, tourism and housing to boost renewable self-supply of electricity, scale resilient tourism investments and increase safety-focused upgrades in multi-apartment buildings; and measures to increase disaster insurance uptake and provide recovery support for vulnerable populations. The Cat DDO has a three-year loan duration and is designed to complement budget reserves by providing immediate liquidity and bridge financing while other funds are mobilised. Through the World Bank’s Crisis Preparedness and Response Toolkit, Croatia will also have access to the Rapid Response Option, which allows countries to repurpose up to 10% of undisbursed funds from existing World Bank-financed projects for urgent needs.
World Bank 2026-01-28
World Bank signs EUR 100 million catastrophe drawdown policy loan with Croatia to bolster disaster preparedness and resilience
The World Bank and Croatia's Ministry of Finance signed a EUR 100 million Disaster Preparedness and Resilience Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) to support emergency response and recovery after natural disasters. This initiative, Croatia's first Cat DDO, focuses on infrastructure management, sector reforms, and disaster insurance, with a three-year loan duration and access to the World Bank's Rapid Response Option for urgent needs.