Rapid-Onset Natural Disasters Technical Briefs Main Summary

This document synthesizes information from eight briefs on issues of rapid onset natural disasters for the Microenterprise Best Practices (MBP) project. 

Information from the first five briefs focuses on guiding microfinance institutions' (MFIs) responses in a natural disaster situation:

• Brief 1 - addresses the various ways in which MFIs can ease the impact of natural disasters on clients by rescheduling loans;
• Brief 2 - suggests strategies that MFIs should follow for extending new loans to clients in a post-disaster situation;
• Brief 3 - suggests that MFIs should use compulsory deposits rather than new loans to assist clients through emergencies, in order to avoid a liquidity crisis;
• Brief 4 - encourages MFIs to carry out intermediate and immediate non-financial relief services, if they possess the capability to do so;
• Brief 5 - suggests strategies for MFIs to prepare for management of liquidity crises pre- and post-disaster.

The three latter briefs focus on natural disaster preparedness. They disseminate the following information:

• Brief 6 - provides an outline of steps that MFIs can take to:
  • Reduce the impact of a sudden natural disaster on the their portfolio and solvency,
  • Respond rapidly and effectively when disaster strikes.
• Brief 7 - examines several disaster preparedness tools to mitigate the effects of a sudden natural disaster on MFIs clients;
• Brief 8 - suggests guidelines for donors to help cushion the impact of natural disasters.