Discussion of a pilot project on the issuance of bonds to eliminate the consequences of natural disasters

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On December 10. 2024, the Deputy Chairman of National Bank of Tajikistan, Sirojiddin Ikromi and the Asian Development Bank delegation led by Thomas W. Kessler, Chief Financial Officer (Disaster Insurance) of the bank's Financial Sector Group have held the meeting during which the project on the issuance of bonds to eliminate the consequences of natural disasters (Disaster Relief Bond (DRB)) by the ADB for the Republic of Tajikistan was discussed.

Also, during the meeting it was noted that due to climate change, the region has been experiencing an increase in natural disasters in recent years, and responding to them and restoring damage requires significant financial resources.

In turn, current resources are often insufficient to meet needs, and there is a necessity to find new financial instruments. The Disaster Relief Bond project is designed to reduce physical and financial vulnerability in the event of climate change and natural disasters, and it is used as a protective insurance mechanism.

At the same time, it was noted that the issuance of such securities will ensure the rapid mobilization of necessary financial resources and reduce the burden on the state budget, serving as a source of immediate liquidity in the event of natural disasters.

At the meeting, the parties also have exchanged views on the mechanism for implementing the aforementioned project in the Republic of Tajikistan, cooperation between stakeholders, including government agencies, private companies and international institutions, and discussed issues of mutual interests.

Press Division

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11.12.2024