The Asian Development Bank (ADB) has announced a pilot project in Tajikistan to issue bonds aimed at addressing the financial impact of natural disasters. The initiative was discussed during a meeting between ADB representatives and the leadership of the National Bank of Tajikistan (NBT) on December 10 in Dushanbe, as it was informed by ASIA-Plus.
According to the NBT press center, the region has experienced an increase in natural disasters due to climate change. The aftermath of such events often demands financial resources beyond the capacity of current funding mechanisms.
The proposed bonds are designed to serve as a protective insurance mechanism, reducing physical and financial vulnerabilities linked to climate change and natural disasters.
Objectives of the Bond Initiative
The bonds aim to ensure:
- Rapid allocation of financial resources: Providing immediate liquidity during disasters.
- Reduced state budget burden: Offering a supplementary funding source for emergency response efforts.
The meeting also covered implementation mechanisms for the project. ADB and NBT representatives discussed potential collaboration with government agencies, private sector companies, and international organizations to ensure effective execution of the initiative.
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