Pandemic Emergency Finance Facility Launched by World Bank [ Current Affairs ]
Pandemic Emergency Finance Facility (FEP) has been launched by the World Bank at the G-7 Finance Ministers Summit held in Ise-Shima, Japan to help countries and health agencies fight terminal disease occurrences.
- FEP is financing mechanisms introduce for fast mobilize funds to challenge global disease outbreaks and create a new assurance market for pandemic risk.
- Japanese Government has dedicated to contribute $50 million dollars and become the first donor.
- World Bank, World Health Organization (WHO) and the private sector reinsurance companies and many more have jointly designed it.
- FEP is intended to work nearly an insurance policy, but it will be essentially protect against fatal disease outbreaks by ensuring “surge funding” to answer efforts.
- According to four categories of infectious diseases the funding will be paid based on a difficult trigger mechanism and activation criteria.
- Up to US 500 million dollars will offer as coverage for outbreaks of catching diseases mostly cause major epidemics for an early period of 3 years.
- The major epidemics enclosed under PEF contain new influenza pandemic virus A, B and C, MERS, SARS, Ebola, Crimean Congo, Marburg, Rift Valley, Lassa fever, etc.
- The assurance window below it will association the subsidy from the provision markets with the profits of catastrophe or Cat bonds (World Bank issued pandemic bonds) as well as a balancing cash window.
- World Bank Cat Bonds for the first time used to combat infectious diseases.
- Published on: May 26, 2016