Glossary

Risk layering

Using different financial instruments for different disaster frequencies.

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This report offers an in-depth assessment of pre-arranged financing tools using seven key criteria for ensuring pre-arranged financing reduces the human and financial costs of disasters

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other key terms

Crisis financing

Funding designed to prevent, prepare for and respond to crises before and after they occur.

Fragility

High exposure to risk combined with weak capacity to cope, often leading to crisis.

Official development assistance (ODA)

Public aid supporting development and welfare in eligible countries, usually on concessional terms.

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.

Disaster risk financing

Financial arrangements made in advance to pay for disaster prevention, response and recovery.

Resilience

The ability to withstand shocks, adapt, recover and continue functioning over time.