Natural Disasters


Improving fiscal planning to manage natural disasters financial risks

Countries need to create special reserves to be better prepared to deal with the potential costs that natural disasters could generate. The IDB helps countries improve their fiscal and budgetary planning to attend natural disasters, particularly in the institutional and technical design and implementation of such reserve funds.

The Bank supports:

  • Fiscal feasibility studies on financing of extraordinary expenses for natural disaster emergencies.
  • Design of financing mechanisms for disaster emergencies that occur frequently but with small impact (budgetary reallocations, reserve funds, etc.).
  • Development of systems and procedures to improve the analysis and control of financial amounts at risk and financial coverage.