Contingent liabilities from natural disasters: Maldives

The Maldives is vulnerable to the impacts of natural hazards however, the frequency and associated losses of events are comparatively low. This report identifies and estimates the disaster-related liabilities in the Maldives and presents potential actions to manage them. Expenditures made in response to disasters are referred to as disaster-related contingent liabilities. These expenses arise only if a contingent event, such as a disaster, happens. The objective of this report is to identify and quantify liabilities that may arise when natural disasters occur in the Maldives, and to present potential actions to manage them. In this context, the World Bank–GFDRR disaster risk finance and insurance program (DRFIP), in collaboration with the Government of the Republic of the Maldives (GoRM), has sought to define, assess, and quantify disaster-related liabilities. Having assessed risks, it is hoped that the government will be more able to secure financing, use and monitor funding, and reduce financial risk. Securing financing may include integrating disaster risk into fiscal risk and public debt management, improving the post-disaster budget response capacity, and clarifying post-disaster financial assistance.