Himal Press 
KATHMANDU: Nepal and the World Bank have signed an agreement to explore the development of a catastrophe bond that would help the country access funds quickly in the event of a major earthquake.
According to a statement issued by the World Bank Group on Thursday, the mandate agreement marks the beginning of a collaboration to assess how capital markets can support Nepal’s broader disaster risk management strategy.
Under the agreement, the World Bank Group Treasury will work with the Government of Nepal and market participants to assess the feasibility and potential structure of the proposed bond.
The initiative is a part of the World Bank Group’s established catastrophe bond program which has helped countries access international capital markets to transfer disaster risk and secure financial protection against natural hazards.
Nepal is among the world’s most disaster-prone countries and faces risks from earthquakes, floods, landslides and other natural hazards. The proposed initiative aims to explore an additional source of financial protection to help the country prepare for and recover from major disasters.
