CCF is an investment loan that provides borrowing member countries with significant liquid resources following severe natural disasters or public health events to help deliver humanitarian relief, restore basic services to the population, and enact other response measures. It has two coverage modalities:
CCF-Modality I is a parametric coverage for natural disasters, up to $300 million or 2% of GDP. It covers rapid onset, low-probability natural hazards with large-scale impact, triggered by predefined and measurable parametric conditions;
CCF-Modality II is a non-parametric coverage for natural disasters and public health risks, up to $100 million or 1% of GDP. It addresses events not covered by CCF-MI, including non-parametric natural disasters and public health risks that significantly affect the population and economy.
Triggers
Coverage can be triggered upon the occurrence of an eligible event as specified in the contract.
Examples
Financing response after an earthquake or flooding.
Lending rate: SOFR base rate + IDB Ordinary Capital variable lending spread:
SOFR base rate is USD SOFR daily overnight compounded rate + IDB's funding margin. Funding margin for 1st quarter 2025 is 41 bps.
IDB’s Ordinary Capital lending spread - for 2025 is 80 bps.
Fees: One-time drawdown fee of 50 bps on the disbursed amount. No commitment fee, or up-front fee applies.
Interest and Currency conversion options are available.
For applicable loan charges and conversion option fees, please refer to www.iadb.org/rates
Flexible repayment options subject to a maximum maturity of 25 years, and maximum Weighted Average Life (WAL) of 15.25 years.
Standard Grace Period: 5.5 years.
Standard amortization schedule (semiannual, straight-line payments), bullet repayment structures, extended grace periods, uneven amortization schedules, and shorter repayment periods are available without additional cost.
On April 16, 2016, a 7.8 magnitude earthquake struck the northern coastal region of Ecuador, with its epicenter near the province of Manabí. The disaster left 663 people dead, 4,859 injured and around 80,000 evacuated.
The IDB's rapid response to the 2016 earthquake in Ecuador allowed the delivery of critical support to affected communities, rehabilitating 20 medical facilities to benefit 650,000 patients and establishing 25 provisional educational facilities while repairing over 700 schools to support 412,637 students. Essential water and sanitation services were restored to 370,000 people through the rehabilitation of 6 water and 6 sewage systems. Temporary housing provided shelter for 41,511 displaced individuals and 7 million cubic meters of debris were safely removed, enabling reconstruction efforts. These actions significantly improved living conditions, restored vital services, and laid the foundation for long-term recovery.
On September 1, 2019, Hurricane Dorian made landfall as Category 5 on Elbow Cay in the Abaco Islands with wind speed of 185 mph and wind gusts at 200 mph, leaving in its wake a swathe of destruction in Grand Bahama and Abaco.
The IDB's swift response to Hurricane Dorian in The Bahamas provided critical support to restore essential services and rebuild public infrastructure. Funds were directed towards critical infrastructure, rehabilitation of electricity systems to restore power to affected areas, and repairing water and sewage systems to secure access to clean water in impacted communities. An additional $25 million was directed to debris removal and public infrastructure rehabilitation, creating safer living conditions. Humanitarian assistance in the form of school facility repairs benefitted displaced families and children. These interventions significantly improved recovery efforts and laid the foundation for long-term resilience in The Bahamas.