Belize finalizing access to USD $20 million catastrophe fund ahead of 2025 hurricane season

Published by [email protected] at May 18, 2025

Posted: Sunday, May 18, 2025. 2:28 pm CST.

By Breaking Belize News Staff: Belize is moving closer to securing a USD $20 million crisis financing facility from the World Bank through the Catastrophe Deferred Drawdown Option (CAT-DDO), a move aimed at boosting the country’s disaster preparedness and fiscal resilience. Prime Minister John Briceño confirmed the development during his 2025/2026 Budget Speech, highlighting the importance of the facility in the face of increasing climate-related and public health risks.

The CAT-DDO provides countries with immediate access to funding during emergencies, such as natural disasters or biological events. For Belize, the $20 million facility will be partly financed through its International Development Association (IDA) allocation.

To access the funding, Belize must comply with the World Bank’s Sustainable Development Finance Policy (SDFP), which mandates a set of Performance and Policy Actions (PPAs). These are aimed at reinforcing infrastructure, enhancing disaster response capacity, and ensuring long-term fiscal stability.

Two major policy measures have already been approved to meet these requirements: the Disaster Risk Financing Policy and the Medium-Term Fiscal Framework and Fiscal Strategy Plan. Both were recently approved by Cabinet and are scheduled to be formally presented in the House of Representatives.

The CAT-DDO will act as a financial safety net, enabling the government to quickly close any gaps in funding during emergency responses. It is expected to be approved ahead of the 2025 hurricane season, offering Belize a vital buffer during periods of heightened risk.

With global climate volatility on the rise, the financing instrument is being welcomed as a proactive step in Belize’s national disaster preparedness and fiscal defense strategy.

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