Business View Caribbean | Volume 8, Issue 8

18 BUSINESS VIEW CARIBBEAN VOLUME 8, ISSUE 8 effects on the economy are potentially more deleterious and destabilizing. Consequently, the GOJ has taken a proactive approach to developing financial, physical and social resilience against disasters. In the event of a named storm, payouts will be triggered if the storm meets the predefined criteria for location and severity as defined in the bond terms. Minister Clarke noted, “Jamaica’s tropical cyclone and hurricane coverage from this CAT bond begins midnight tonight, Friday July 23, and continues for three consecutive hurricane seasons inclusive of the 2021 season. Jamaica’s financial risk will therefore be lower tomorrow than it is today. That is a very good thing.” The transaction was made possible through technical assistance of the World Bank, and with bilateral financial assistance from the Governments of the United Kingdom and Germany through the Global Risk Financing Facility as well as financial support from the United States agency of International Development (USAID).