DomRep Gets IDB Storm Loan

The IDB has approved a $100m loan for the Dominican Republic so the country can cover the costs that arise during earthquakes and hurricanes. The IDB says the facility is the first contingent loan for natural disasters that it has approved for LatAm or the Caribbean. In addition to this facility, the IDB has worked with the Dominican government to help it establish a national reserve fund for emergencies and to develop a catastrophic insurance facility. The loan is for a 20-year term, including a 5-year grace period and a Libor-based interest rate. Separately, the IMF this week approved a $1.7bn equivalent 28-month stand-by arrangement for the Dominican Republic to support its strategy to cope with the adverse effects of the global economic environment.