5 Dec 2016

Cooks gets $US10m ADB disaster loan

1:26 pm on 5 December 2016

The Cook Islands has secured an Asian Development Bank (ADB) loan worth $US10 million which will rapidly make available financing in the event of a disaster.

The Disaster Resilience Program is the first time the ADB has provided disaster contingent financing through policy-based lending.

Completion of 12 priority actions means the Cook Islands is now eligible to access the policy-based loan to meet short-term post-disaster needs.

The program will support the implementation of the government's National Sustainable Development Plan.

The ADB's Emma Veve said the Cook Islands is highly vulnerable to natural hazards, particularly cyclones, floods, and even tsunamis.

She said the country must be commended for actively strengthening its financial reserves and instruments to better respond to the effects of a disaster should one strike.

The loan funds will be available for a three-year period and drawn upon as needed if a state of disaster is declared by the government.