In a transfer to safeguard towards potential losses from named storms, the Jamaican authorities has introduced the renewal of its disaster bond protection.
This strategic monetary measure goals to guard towards losses incurred from named storms for 4 Atlantic tropical cyclone seasons, ending in December 2027.
Minister of Finance and the Public Service, Dr Nigel Clarke, made the disclosure throughout Tuesday’s sitting of the Standing Finance Committee of the Home of Representatives, whose members are reviewing the 2024/25 Estimates of Expenditure.
The renewal comes as a continuation of Jamaica’s proactive stance in mitigating the impacts of pure disasters.
Pioneering monetary resilience
In 2021, Jamaica grew to become the primary small nation globally to independently sponsor a disaster bond.
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This initiative offered essential safety of as much as US$185 million for 3 hurricane seasons, spanning 2021 to 2023.
The Atlantic hurricane season spans from June 1 to November 30 annually.
Now, with the extension of protection, the federal government reaffirms its dedication to fortifying the nation’s resilience towards pure calamities.
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Embracing long-term preparedness
Clarke emphasised the need of long-term planning within the face of Jamaica’s vulnerability to pure disasters.
He articulated the federal government’s intent to safe protection for the upcoming 4 hurricane seasons – spanning 2024 to 2027.
This proactive strategy underscores the significance of steady vigilance and preparedness in safeguarding the nation’s fiscal stability.
Constructing financial resilience
Acknowledging the inevitability of financial shocks, Clarke highlighted the importance of swift restoration mechanisms.
With a concentrate on resilience, Jamaica goals to swiftly rebound from the hostile impacts of pure disasters.
By making certain the provision of fiscal sources in instances of disaster, the federal government endeavors to mitigate the socio-economic ramifications of such occasions.
