The financing will ensure the country has enough in the coffers to immediately provide necessary funds in the case of emergencies, such as natural disasters.  

It will also help enhance the Island state’s disaster risk management, by improving governance, risk identification and reduction, preparation for emergency and response, and financial protection.

“The objective of the operation is to help mitigate the impact that a severe or catastrophic natural disaster could have on the country’s public finances, by increasing the availability, stability, and efficiency of contingent financing to deal with emergencies caused by events of this type,” the bank said.

In the past 50 years, The Bahamas has been hit by 18 hurricanes and in the past three years, three major hurricanes have inflicted substantial damage to the country.

The financing will help The Bahamas broaden and deepen its financial strategy to address and recover from natural disasters, support the government’s response capacity and protecting its fiscal balance, the IDB said.