Egypt’s Ministry of Finance is studying financial mechanisms to manage the potential fiscal impact of natural disasters as part of a medium-term disaster risk financing strategy.
The options under review include emergency credit lines, insurance for critical public assets, sovereign risk transfer instruments and catastrophe bonds. The ministry is also assessing whether government debt contracts could include clauses allowing payment suspensions after a disaster.
According to the announcement, officials are conducting a feasibility study for a potential national disaster insurance program. The initiative is being examined in coordination with government and regulatory bodies.
The Debt Management, Macroeconomic Fiscal Policy and Risk Management units are reviewing debt-related options and preparing a report with recommendations. The proposed tools are intended to give the government alternatives to relying solely on public finances for recovery and reconstruction after a disaster.
The next step is a government review of the available financing mechanisms and the recommendations prepared by the relevant units.
Source: WAYA
