Bolivia will improve the management of natural disaster risks with IDB support
OREANDA-NEWS. Bolivia will reinforce its capacity to manage the risks of natural disasters with a $100 million loan from the Inter-American Development Bank (IDB).
Bolivia faces one of the highest risks of natural disasters in the Andean region. Events related to the El Nino and La Nina phenomenons have cost it between 5 and 15 percent of its Gross Domestic Product, directly affecting hundreds of thousands of people.
In recent years, with the support of the IDB and other multilateral entities, Bolivia launched a series of reforms to improve the management of risks from natural disasters. In 2014, it issued regulations for a new law that clearly defines the institutional responsibilities in reducing risks and responding to emergencies.
Among the pending challenges for the Bolivian government are assigning resources for investments to avoid and mitigate natural disasters; adapting to climate changes; and making systematic use of risk-management criteria in planning public investments.
The loan, to be disbursed in one operation, is made up of one $85 million loan -- for 30 years, with a six-year grace period and an interest rate based on LIBOR -- and a $15 million loan for 40 years, with a 40-year grace period and an interest rate fixed at .25 percent per year.
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.