Development bank
Financial institution that offers financing (typically in the form of loans and grants) and complementary technical assistance, tied to explicit development objectives (Centre for Disaster Protection).
Climate resilient debt clause or 'debt pause clause'
A provision in sovereign debt contracts that enables the borrower to temporarily stop repaying debt service for a pre-agreed period when a predefined event occurs.
Fragility
High exposure to risk combined with weak capacity to cope, often leading to crisis.
Shock-responsive social protection
Social protection systems adapted to scale quickly when large shocks affect many people.
Cost multiple
The cost multiple measures the average amount a government pays to receive USD 1 of payout from a financing instrument over its lifetime.
Social protection
Policies and programmes designed to reduce and prevent poverty and vulnerability throughout the life cycle.
Catastrophe bond
A catastrophe bond (cat bond) is a risk-transfer financial instrument that allows governments or insurers to transfer disaster risk to capital market investors.
