Inter-American Development Bank Arranges Catastrophe Swap for Belize to Enhance Hurricane Resilience
The Inter-American Development Bank (IDB) has facilitated a catastrophe swap for Belize, providing parametric insurance coverage for hurricane risk up to USD 20 million, with a maximum annual payout of USD 10 million. This initiative, backed by Swiss Re, aims to transfer a portion of Belize's hurricane risk to international reinsurance markets. The coverage is effective from August 1, 2026, through May 31, 2028, ensuring rapid access to funds if the policy is triggered by a hurricane event. This parametric risk-transfer protection supplements existing financial mechanisms, including USD 25 million in contingent financing from the IDB's Contingent Credit Facility for Natural Disaster Emergencies (CCF) and USD 118 million in approved loans with Climate Resilient Debt Clauses (CRDC). The CRDC allows Belize to defer principal payments for two years following an eligible natural disaster. The transaction is supported by technical cooperation resources from the Ready and Resilient Americas Initiative, contributi... 
