Nepal, World Bank sign agreement to explore catastrophe bond for earthquake protection

KATHMANDU: The government and the World Bank have signed a mandate agreement to explore the development of a catastrophe bond that could help Nepal access funds quickly in the event of a major earthquake.

The agreement marks the beginning of a joint assessment of how international capital markets could provide financial protection against natural disasters and complement the country’s broader disaster risk management strategy.

The agreement was signed in the presence of Finance Minister Swarnim Wagle and Finance Secretary Ghanshyam Upadhyaya from the government’s side, and Jorge Familiar, vice president of treasury, and David Sislen, divisional director for Maldives, Nepal and Sri Lanka, from the World Bank’s side.