Pandemic bond trigger failure shows flaws of relying on reporting by poorest countries

The World Bank’s pandemic bond has failed to pay out to poor countries at its first opportunity, a predictable result of designing a structure dependent on the ability of those countries to report coronavirus cases.

Covid19_shutterstock-600x150

The World Bank’s pandemic bonds, issued in 2017 and designed to help poor countries deal with the effects of a disease pandemic earlier than traditional insurance schemes such as catastrophe bonds, have failed to hit their triggers at the first opportunity since the coronavirus outbreak began.

As Euromoney has previously reported, April 9 was the earliest point at which a determination as to whether the bonds would pay out could be made.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access