31 May 2012: The Inter-American Development Bank (IDB) has approved a US$100 million loan to support Panama in its efforts to reduce vulnerability to natural disasters and climate change.

The “Panama Program to Reduce Vulnerability to Natural Disasters and Climate Change” project is designed to support Panama in developing a policy and risk management framework to improve its risk management index (RMI).

The project is based on the recognition of Panama’s increasing vulnerability to natural disasters due to its rapid urban growth and land degradation trend. Specifically, the program will aid in policy reform through addressing issues of governance and financial management. It will also develop management tools for effective risk identification, risk reduction, and disaster management.

The project’s main objective is to reduce Panama’s vulnerability to the negative impacts of climate change through providing the country with the proper management instruments to maximize response and efficiency. This is the second US$100 million loan approved by the IDB to finance Panama’s resilience to natural disasters. [IISD RS Story on IDB’s First Loan to Panama] [IDB Press Release]