Consequently, Dominica faces a high risk of debt distress in contrast to the previously moderate risk (IMF 2013a, 2016a). Dominica suffered considerably from the impact of Category 5 Hurricane Maria, which was probably even more substantial than Hurricane Erika, while Vanuatu had to undertake a massive relocation exercise of 11,000 people on account ofthe threat ofthe volcanic eruption on the island of Ambae. Both countries have similar physical island characteristics in terms of climate and vegetation, but, whereas Dominica consists of one island, Vanuatu is a group of around 80 islands. As a result of their island geography and locations in the Caribbean and the Pacific, respectively, both countries are highly vulnerable to multiple hazards, such as cyclones, earthquakes, flooding, volcanic activity and associated tsunami threats.