Total crisis financing
A sub-set of international development financing, which includes activities and flows to organisations whose primary purpose is to deliver prevention, preparedness and response to crises (Centre for Disaster Protection).
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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.
Financial Flows
Financial flows refer to the movement of funds for disaster risk reduction (DRR) and response, covering planned and unplanned sources.
Contingent loan (or credit) and grants
A pre approved loan released automatically when agreed crisis conditions or triggers are met.
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.
Resilience
The ability to withstand shocks, adapt, recover and continue functioning over time.
Parametric insurance
Insurance that pays when an agreed indicator reaches a set level, not actual losses.
