Mexico expects to receive MXN$ 2.7 billion from World Bank Catastrophe Bond

The WB Catastrophe bond is one of the five stages in the financial structure for Mexico's reconstruction
The aftermath of Mexico City devastating earthquakes - Rebecca Blackwell/EL UNIVERSAL
05/10/2017
13:53
Newsroom/EL UNIVERSAL in English
Mexico City
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According to Mexico's Undersecretary of Finance and Public Credit, Vanessa Rubio, the country may receive MXN$ 2.7 billion from the World Bank Catastrophe Bond.

On a video, Vanessa Rubio explained the five stages in the Financial Structure for Mexico's Reconstruction.

Mexico's National Disaster Fund (Fondo de Desastres Naturales abbreviated Fonden) is the first stage with an approximate amount of MXN$9 billion, followed by a MXN$5 billion insurance as the second stage.

The third stage is an estimated payment of MXN$ 2.7 billion from the World Bank Catastrophe Bond after technical and geological evaluations are available.

The fourth stage is the insurance that the affected states have along with private property insurance linked to mortgage loans of proprietors who contracted insurance in case of a total or partial loss.

The fifth and final stage in the financial structure for Mexico's reconstruction is the collaboration with insurance companies.

Mexico's Undersecretary of Finance and Public Credit, Vanessa Rubio, assured that Mexico has a solid financial architecture for reconstruction caused by natural disasters.
 
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