Peru takes strides to reduce its vulnerability to natural disasters with support from the IDB

The Inter-American Development Bank (IDB) has approved a $25 million loan to support Peru’s efforts to reduce its vulnerability to disasters and to improve its ability to respond to them.

This is the third loan focusing on public policies to improve the capacity of the government to respond to natural disasters. These flexible loans provide resources to governments to finance high-priority programs. The disbursements are made after the government reaches the public policy reform goals agreed upon with the IDB.

With the first loan, the IDB supported the Peruvian government in the design of a strategic budgetary program that helped to expand public investment in disaster prevention from $23 million in 2009 to $300 million in 2014. The second loan targeted the design of a law and regulations governing the National Disaster Risk Management System (SINAGERD), placing Peru at the forefront of the region in planning for disasters.

The third loan enables implementation of the National Policy and Plan for Risk Management, the Secretariat for Disaster Risk Management in the Office of the President of the Council of Ministers, the budgetary strategy for disaster risk, and the planning of the continuous relief operations in emergency situations.

The loan is for an 8-year term, with a 6.5 grace period and an interest rate based on LIBOR.