Debt Sustainability under Catastrophic Risk : The Case for Government Budget Insurance /

Natural disasters are an important source of vulnerability in the Caribbean region. Despite being one of the more disaster-prone areas of the world, it has one of the lowest levels of insurance coverage. This paper examines the vulnerability of Belize's public finance to the occurrence of hurri...

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Detalles Bibliográficos
Autor Principal: Cavallo, Eduardo
Outros autores: Borensztein, Eduardo, Valenzuela, Patricio
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2008.
Series:IMF Working Papers; Working Paper ; No. 2008/044
Acceso en liña:Full text available on IMF
Descripción
Summary:Natural disasters are an important source of vulnerability in the Caribbean region. Despite being one of the more disaster-prone areas of the world, it has one of the lowest levels of insurance coverage. This paper examines the vulnerability of Belize's public finance to the occurrence of hurricanes and the potential impact of insurance instruments in reducing that vulnerability. The paper finds that catastrophic risk insurance significantly improves Belize's debt sustainability. In addition, the methodology employed makes it possible to estimate the appropriate level of insurance, which for the case of Belize is a maximum coverage of USD 120 million per year.
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Descrición Física:1 online resource (26 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students