In the wake of a natural disaster, countries need to immediately access funds to rebuild damaged infrastructure and re-establish critical government services, but the immediate aftermath of a disaster is often when financial liquidity constraints are at the highest.  The time gap between the occurrence of a natural disaster and access to funding can be costly, exacerbating poverty through impacts on health, mobility, and access to education.

In countries regularly exposed to natural disasters, including health-related events, a Development Policy Loan with a Catastrophe Deferred Drawdown Option (Cat DDO) can provide expedient financing following a disaster. A Cat DDO is a contingent financing line that provides immediate liquidity to countries to address shocks related to natural disasters and health-related events. It serves as early financing while funds from other sources such as bilateral aid or reconstruction loans are being mobilized.