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

Contingent loan (or credit) and grants

A pre approved loan released automatically when agreed crisis conditions or triggers are met.

Pre-arranged financing

Financing approved before crises that is released automatically when agreed triggers are met.

Development bank

A public financial institution providing loans, grants and expertise to support development goals.

Shock-responsive social protection

Social protection systems adapted to scale quickly when large shocks affect many people.

Ex ante

Actions, decisions or financial arrangements made before a disaster or crisis occurs.

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.