DoF may yet be the country’s best disaster relief agency

AMID ongoing concerns caused by the eruption of the Taal Volcano, we should take a moment to appreciate how the Department of Finance (DoF) has probably guaranteed that no matter what the volcano has damaged or might still yet ruin, the economy will not be among the casualties.

Unbeknown to most people until Finance Secretary Carlos Dominguez 3rd announced it last Monday, barely two months ago, in November of last year, the DoF organized the issuance of a so-called CAT bond — the CAT stands for “catastrophe” — worth $225 million through the World Bank. If the damage from the Taal eruption reaches a specified limit, the government will be able to collect that amount to fund relief and rehabilitation efforts, sparing the national budget from an enormous expense.