This loan, approved by the IDB's Board of Executive Directors through the Contingent Credit Facility for Natural Disasters and Public Health Emergencies (CCF), will allow the country to quickly access resources in the event of natural disasters and public health emergencies.

The Inter-American Development Bank (IDB) has approved a US$400 million contingent loan to support Colombia in strengthening its financial resilience in the face of natural disasters and public health emergencies.

This loan, approved by the IDB's Board of Executive Directors through the Contingent Credit Facility for Natural Disasters and Public Health Emergencies (CCF), will allow the country to quickly access resources in the event of natural disasters and public health emergencies.

Among other things, it will fund immediate care for the affected population, helping to cushion the impact on the country's public finances and lay the foundation for a rapid and sustainable recovery.

"This program is the first CCF contingent loan contracted by Colombia with the IDB. It reflects the country's commitment to continue strengthening its resilience to natural disasters, as well as the Bank's efforts to promote innovative financial solutions that improve disaster risk management in Colombia," said Ramiro López-Ghio, the IDB representative in Colombia.

Colombia is exposed and vulnerable to natural hazards such as earthquakes, floods, volcanic eruptions, droughts, tsunamis, and forest fires.

Since 1990, the country has recorded 163 extreme events, affecting more than 13 million people and causing billions of dollars in losses.

The program includes humanitarian assistance activities, the reconnection of public services, and the early rehabilitation of critical infrastructure, among other immediate response measures.

This operation, along with a technical assistance program, will contribute to improving the country's comprehensive disaster risk management across five strategic areas: governance, risk identification and awareness, disaster risk reduction and adaptation, preparedness and response, and financial protection.

If loan proceeds are disbursed in the event of a qualifying event, the financing terms would be a 25-year amortization term, a 5.5-year grace period, and an interest rate based on SOFR.