The World Bank has given approval for two loans to Dominica. The $30 million initiative is titled ‘Dominica Second Covid-19 Response and Recovery Programmatic Development Policy Credit’. There is a $20 million policy package too, namely ‘Dominica Disaster Risk Management Development Policy Financing’.

Both operations are expected to assist the country in recovering from COVID-19’s effects, protect their lives as also their livelihoods, speed up policy changes, and enhance the island’s overall resilience to social, economic and healthcare related shocks.

“By embarking on a comprehensive set of changes, including financial sector reform, developing a wide-ranging climate resilience agenda, and implementing a strong disaster risk management structure, Dominica is progressing toward a resilient recovery while preparing for future calamities,” said World Bank Country Director Lilia Burunciuc.

Activities supported by the first initiative includes the establishment of a monetary fund to be able to counter future events effectively. The money will also help to improve a more efficient social protection system, which will include improved protection for women who are disproportionately affected by disasters. A further component will include more public debt transparency and enhanced procurement processes. The finance would also go toward policy changes that would improve climate and environmental resilience.

The Dominica Disaster Risk Management Development Policy Financing with a Catastrophe Deferred Drawdown Option provides the government with US$20 million in financing to respond to disasters and health-related occurrences. Given that Dominica is one of the world’s most vulnerable nations to extreme weather events and climate change, it is critical that disaster response teams respond swiftly and correctly to climate-related catastrophes.

The recommendations and plans to be implemented during this operation will aid in the immediate reduction of social and economic disaster costs, as well as improve climate resilience in key sectors.

The International Development Association (IDA) finances development projects in Dominica, which aim to decrease poverty by providing low-interest loans and grants for programs that enhance economic growth, reduce disparities, and improve people’s living standards.

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