THE World Bank has appropriated money for the Philippines intended to boost its ability to respond to disasters and provide relief in the wake of nature-induced calamities.

The money comes in the form of a loan already approved by the Bangko Sentral ng Pilipinas (BSP) totalling $500 million.

“This is a World Bank instrument or facility that provides immediate liquidity in the event of national calamity complement[ing] the government’s national and local calamity funds to cover expected and post-disaster expenses,” BSP Gov. Amando M. Tetangco Jr. said on Monday.

He lauded the World Bank for supporting the risk-reduction efforts of the government.

“Since the loan is intended to finance post- disaster reconstruction efforts, the disbursement amount and release date would be contingent on the extent of the catastrophe as well as the related damage,” Tetangco said.

Also, a presidential declaration of a state of calamity on affected areas is needed to trigger the release of the loan.

This facility was structured as a 25-year loan with a five-year grace period and may be implemented with a fixed or variable rate of interest.

There is an up-front fee of 0.5 percent of the loan amount.