June 27 (SeeNews) - The World Bank said on Wednesday it is lending 400 million euro ($466 million) to Romania to help the country develop its disaster risk management policies.
The agreement includes a Catastrophe Deferred Drawdown Option (CAT DDO) that aims to support Romania's efforts to effectively prepare and react to natural disasters and climate change, the World Bank said in a statement.
"Cataclysmic events generate a significant financial shock for Romania, which could trigger an economic downturn, disproportionately affecting the most needy people. Increasing resilience to shocks is a central element of our new strategy for Romania, as well as the core of our efforts to promote inclusive growth," World Bank country director for Romania and Hungary,Tatiana Proskuryakova, said.
According to the World Bank, Romania faces some of the greatest seismic risks among European Union member states with thousands of lost lives and tens of thousands of buildings damaged by earthquakes that took place in the last two centuries. In addition, almost one million Romanians are living in areas exposed to high flood risks.
World Bank data show that between 1970 and 2016 there were 85 natural disasters in Romania, including 47 floods, four earthquakes and two droughts, which affected a total of nearly two million people and generated losses of more than $6 billion.
($= 0.8576 euro)