Portugal Explores Catastrophe Bonds for Disaster Resilience (eco.sapo.pt)

• Government considers cat bonds for disaster funding.
• Included in the 22.6 billion euro national recovery plan.
• Goal is to secure rapid liquidity during extreme events.

"The Portuguese government is considering issuing catastrophe bonds to ensure immediate liquidity in the event of extreme natural disasters. This mechanism is outlined in the nation's 22.6 billion euro Transformation, Recovery, and Resilience Plan. By transferring risk to capital markets, the government aims to protect fiscal stability against unpredictable climate-related shocks, marking a strategic shift in national disaster management funding."