Natural disasters continue to devastate smaller enterprises in the emerging market countries, where underdeveloped insurance markets do not provide an adequate safety net. A powerful earthquake struck Indonesia’s main island of Java where the capital city Jakarta is located, causing major destruction. In India, where the summer rainfall was 25% less than normal, the driest spell in nearly 40 years, prices of food from recently-harvested crops have risen by 14.5%. The State Bank of India has responded with a drought relief package, including cuts on lending rates for farms and rural producers. The Bank reduced crop loan interest rates from 11.75 – 12.75% floating rates to 10% fixed. The Bank cut loan rates on irrigation programs from 10.50 – 13.25% to 8 – 9%. Both reduced rates remain in effect through March 2010, with an extra percentage point reduction on interest rates offered for timely repayment.