The Asian Development Bank (ADB) has approved plans to issue a pilot parametric catastrophe bond for Kyrgyz Republic and Tajikistan which could be as much as $100 million in size, protecting both countries against earthquake and flood risks.
This initiative accompanies ADB’s approval of a $56.4 million program aimed at strengthening both countries’ capacity to respond to natural disaster events.
Both countries are highly vulnerable to natural disasters, such as earthquakes and floods, but lack both the fiscal capacity and risk transfer mechanisms to effectively respond to these types of events.
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