01855cas a2200265 a 4500 AALejournalIMF009857 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869064 1018-5941 BD-DhAAL BD-DhAAL Cavallo, Eduardo. Debt Sustainability under Catastrophic Risk : The Case for Government Budget Insurance / Eduardo Cavallo, Eduardo Borensztein, Patricio Valenzuela. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Natural disasters are an important source of vulnerability in the Caribbean region. Despite being one of the more disaster-prone areas of the world, it has one of the lowest levels of insurance coverage. This paper examines the vulnerability of Belize's public finance to the occurrence of hurricanes and the potential impact of insurance instruments in reducing that vulnerability. The paper finds that catastrophic risk insurance significantly improves Belize's debt sustainability. In addition, the methodology employed makes it possible to estimate the appropriate level of insurance, which for the case of Belize is a maximum coverage of USD 120 million per year. Mode of access: Internet Borensztein, Eduardo. Valenzuela, Patricio. IMF Working Papers; Working Paper ; No. 2008/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/044/001.2008.issue-044-en.xml IMF e-Library