Bangladesh could benefit from the use of insurance and reinsurance structures including catastrophe bonds as a way to secure much needed capacity enabling it to better respond to natural disasters and climate related risks, according to the International Monetary Fund (IMF).

Having completed a new economic assessment of the country, the IMF says that Bangladesh is making progress in reducing poverty, improving access to education and in delivering other development goals, but there is an overarching threat to the country posed by extreme weather and climate change.

Bangladesh is considered one of the countries most exposed to climate change related risks, with as much as one-third of the population at risk of displacement if sea levels rise.

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