Macedonia also part of "Europa Re": the project will enable increased access to funds for protection from natural disasters. The project would be beneficial for households, economy, small and medium enterprises, farmers, i.e. all those who suffer consequences from natural disasters.
Republic of Macedonia has become a part of World Bank's regional project over the establishment of specialized facility for reinsurance of catastrophe risks "Europa Re", following the signing of the agreement between Deputy Premier and Finance Minister Zoran Stavreski and World Bank country manager Lilia Burunciuc. The project will enable increased access to funds for protection from natural disasters.
"Macedonia is a region where natural disasters are a common phenomenon. Every year we suffer damages from diverse disasters, such as droughts, floods etc. The problem is there, but the market did not have a product to cover this. That is why this product has been developed", said Stavreski.
He added that Macedonia would take part in the project with 5 million US dollars, provided through a World Bank loan with a 22-year repayment period, a 6-year grace period and variable interest rate currently standing at 1.1 percent. The project would be beneficial for households, economy, small and medium enterprises, farmers, i.e. all those who suffer consequences from natural disasters.
According to Burunciuc, the project is significant since there has been an increasing trend of natural disasters resulting from climate change in Macedonia over the past two decades, along with the fact that the country is located at the Mediterranean seismic belt, which causes earthquakes. The project foresees the establishment of a joint reinsurance facility "Europa Re", with head offices in Switzerland, which will enable national insurance companies to reinsure products of catastrophe risks. The facility is expected to be operational in 1-1,5 year.