Among other functions, the immediate care of the affected population will be financed, helping to lay the foundations for a rapid and sustainable recovery.

The Inter-American Development Bank (IDB) approved this Friday a contingent loan for US$250 million to help Bolivia build greater financial resilience in the face of floods, droughts, forest fires and possible epidemic and pandemic outbreaks.

This loan, approved by the IDB Board of Executive Directors through the Contingent Credit Facility for Emergencies due to Natural and Public Health Disasters (CCF), will allow the highland country to quickly access resources in the event of emergencies due to natural and public health disasters.

Among others, it will finance the immediate care of the affected population, helping to lay the foundations for a rapid and sustainable recovery.

"This loan represents a significant step in reducing financial vulnerability to disasters," highlighted the specialist from the IDB's Connectivity, Markets and Finance Division, Juan José Durante.

Bolivia is a country very exposed and vulnerable to natural threats of hydrometeorological origin. As the effects of climate change worsen, these threats are expected to become more frequent and intense, disproportionately affecting the most vulnerable groups in the country.

Through this coverage, Bolivia will strengthen its capacity to deploy a rapid and effective response to the impact of extreme events, including humanitarian assistance activities, the reconnection of public services and the early rehabilitation of critical infrastructure, among other immediate response measures.

Until disbursements are made due to the occurrence of a large eligible event in the country, this operation does not generate external financing for Bolivia.

If loan resources are disbursed in the event of an extreme event, the financial conditions that the financing would have would be a repayment period of 25 years, a grace period of 5 years and an interest rate based on SOFR.