The agreement brings the total pool of funds held in trust by the World Bank as donor sponsorship to US$67 million, with premium income and a one-time initial fee accounting for another US$63 million - bringing the total value of the insurance facility to US$130 million.
Bermuda earlier made a US$500,000 contribution to the facility's reserves, becoming the first CCRIF policyholder of 16 to have done so.
Other donors to the near two-year-old facility, which became operational in June 2007, includes the Irish government which donated US$2.4 million in February last year as the CCRIF continues to advocate for additional funds; Canada, the World Bank, the United Kingdom, France and the Caribbean Development Bank.
CCRIF, the first-ever regional insurance facility, was developed to limit the financial impact of catastrophic hurricanes and earthquakes on Caribbean budgets through liquidity support.
The member countries are Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, St. Kitts and Nevis, St Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and the Turks and Caicos Islands with negotiations ongoing with Guyana and Suriname to sign on to the insurance scheme.
Payouts
Since inception, CCRIF has made payouts of approximately US$1 million to Dominica and St Lucia in the aftermath of a 7.4 magnitude earthquake that shook the islands on November 29 in 2008.
CCRIF was also able to make a quick payout amounting to US$6.3 million to the Turks and Caicos island following Hurricane Ike last year.
"...With experts already making predictions of a very active season in 2009, we know the European Union's contribution will make it that much easier for us to fulfil our mandate of providing liquidity in the short term, after a catastrophic hurricane or earthquake, which causes damage great enough to prevent a member government from being able to fund its most crucial activities," said Isaac Anthony, CARICOM-appointed board member to the CCRIF.
sabrina.gordon@gleanerjm.com