Jamaica now has five avenues through which it can respond to severe weather conditions in the country.
The Ministry of Finance increased to five the number of disaster response avenues when Jamaica independently sponsored a Catastrophe Bond or ‘Cat Bond’ recently.
Jamaica is set to participate in a 185-million-US dollar or close to 30-billion Jamaica dollar “Cat Bond” investment.
This could see the country receiving economic relief in the event of a tropical cyclone.
The bonds which were issued under the World Bank’s ‘Capital at Risk Notes’ Programme will be settled on Friday and begin the same day.
Finance Minister, Dr. Nigel Clarke, says the Cat bond is important financial insurance for Jamaica in the event that the country is economically devastated by a hurricane.
He further noted that the move is a proactive one as the bond will make payments immediate once the relief fund is triggered.
The bond is among four other relief avenues that have been established by the government for the country to access funding in a natural disaster crisis.
Another such avenue is a Credit Contingent Claim.
Meanwhile, Dr. Clarke explained that the premium being paid in relation to the Cat Bond was financed by grant funding from the United Kingdom and Germany.