WASHINGTON -- The American Red Cross said Thursday that its response to hurricanes Katrina and Rita has depleted its Disaster Relief Fund, forcing it to borrow $340 million to cover costs - the first time in its 124-year history that the charity has sought a loan for disaster relief.
Of the $2 billion in donations the organization said it needs to handle relief efforts from the Gulf Coast hurricanes, it has received $1.3 billion and spent all of it.
In addition to Katrina and Rita, there is now Wilma and the damage done in Cancun, Cuba, and Florida. There is the flooding in Guatemala, and the Earthquake in Kashmir that still need aid, and now Beta is now staged to do massive damage in Nicaragua. We will soon be facing more calls for aid, and I am not sure what the response will be.