Cars were submerged in floodwaters in NLEX as typhoon Carina lashes the country, Wednesday morning.
FINANCE Secretary Ralph G. Recto has announced that the Department of Finance (DOF) is ready to tap USD 500 million of standby credit line extended to the Philippines to support the national government’s disaster relief and rehabilitation efforts in areas devastated by typhoon Carina.
“These funds will be immediately withdrawn and released once the President declares a state of calamity. This will allow us to rapidly deliver critical services like healthcare, shelter, and food to those affected by typhoon Carina as well as fund post-disaster emergency response, recovery, and reconstruction efforts,” the Finance Chief said.
The World Bank’s Philippines Disaster Risk Management (DRM) and Climate Development Policy Loan (DPL) with a Catastrophe-Deferred Drawdown Option (CAT-DDO5) provides the Philippine government with immediate access to funds in order to manage risks arising from climate change, natural disasters, and disease outbreaks.
A presidential declaration of a state of calamity or a public health emergency is required to trigger the release of the funds under the standby credit facility.
The CAT-DDO5 forms part of the Philippines’ Disaster Risk Financing Insurance (DRFI) strategy, which aims to maintain sound fiscal health at the national level, develop sustainable financing mechanisms for local government units (LGUs), and reduce the impact on the poorest and most vulnerable.
