Caribbean Catastrophe Risk Insurance Facility to be funded through CDB loan
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Contact: Julita Peter
Thursday, August 27, 2009 – Prime Minister and Minister for Finance Honourable Stephenson King on Tuesday August 25th received parliamentary approval to borrow just over 1.3-Million EC Dollars from the Caribbean Development Bank’s Special Funds Resources.
The purpose of the loan is to assist the government in funding its premium payments towards the Caribbean Catastrophe Risk Insurance Facility (CCRIF)With the assistance of the World Bank, the facility allows small states to purchase insurance coverage against potential losses from hurricanes and earthquakes.
Saint Lucia benefited from the Caribbean Catastrophe Risk Insurance Facility, for damages resulting from an earthquake in November 2007.
“It should be noted that depending on the level of coverage purchased on the CCRIF, a participating country hit an insured disaster, earthquake or hurricanes can receive an insurance payout of up to 30-Million Dollars in the immediate aftermath of the disaster. The CARICOM countries collectively participate in this insurance programme and a loan was sought in order to make the final half year instalment,’ said the prime minister whilst putting forward a motion in parliament.
The resolution was supported by Opposition MP for Castries East Hon. Philip J Pierre. “I agree with the prime minister in that we have to insure for these situation for these situations, because in my constituency I know what hurricanes, landslides and natural disasters can cause, because my constituency was affected heavily by that and probably if that insurance facility had existed at the time things might have been better for the people of that constituency,” said the Castries-East MP.
The loan is payable in ten years at an interest rate of 2.5 percent, following a two-year grace period. |
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