TY - BOOK ID - 84541080 TI - Debt Sustainability under Catastrophic Risk : The Case for Government Budget Insurance AU - Cavallo, Eduardo. AU - Borensztein, Eduardo. AU - Valenzuela, Patricio. PY - 2008 SN - 1462318479 1452705704 128351303X 9786613825483 1451913591 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Risk (Insurance) KW - Insurance KW - Risk KW - Exports and Imports KW - Finance: General KW - Natural Disasters KW - Insurance Companies KW - Actuarial Studies KW - Climate KW - Natural Disasters and Their Management KW - Global Warming KW - General Financial Markets: Government Policy and Regulation KW - International Lending and Debt Problems KW - Insurance & actuarial studies KW - Natural disasters KW - Finance KW - International economics KW - Moral hazard KW - Debt sustainability KW - Debt sustainability analysis KW - Financial risk management KW - Debts, External KW - Belize UR - https://www.unicat.be/uniCat?func=search&query=sysid:84541080 AB - 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 US$120 million per year. ER -