Pandemic Bond Payouts Likely to Be Held Up By Fine Print
- World Bank bonds aim to help poor countries tackle disease
- Tough trigger conditions for disbursal of funds criticised
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Developing countries counting on financial support from the World Bank’s pandemic bond program to shore up their healthcare systems in the face of the coronavirus, have a long wait ahead.
The global coronavirus crisis will almost certainly trigger the riskier of two tranches of catastrophe bonds sold three years ago to raise emergency funds for poor countries with weak health infrastructure. The decision rests with AIR Worldwide Corp., a Boston-based firm tasked as arbitrator when an 84 day period from the start of the outbreak at the end of last year expires on March 23, starting a process that could potentially unlock $132.5 million in funds.