Debt-for-Nature Initiatives and the Tropical Forest Conservation Act: Status and Implementation [Updated October 11, 2006] [open pdf - 99KB]
"In the late 1980s, extensive foreign debt and degraded natural resources in developing nations led to the creation of debt-for-nature initiatives that reduced debt obligations, allowed for debt repayments in local currency as opposed to hard currency, and generated funds for the environment. These initiatives, called debt-for-nature swaps, typically involved restructuring, reducing, or buying a portion of a developing country's outstanding debt, with a percentage of proceeds (in local currency) being used to support conservation programs within the debtor country. […] Debt-for-nature transactions are generally viewed as a success by conservation organizations and debtor governments because of the funds generated for conservation efforts. The appeal of debt-for-nature transactions has been tempered in recent years, however, by higher debt prices on secondary markets and lower appropriations. As a result, fewer transactions have taken place. This report provides a description of debt-for-nature transactions and a summary of the Tropical Forest Conservation Act and will be updated as developments warrant."
CRS Report for Congress, RL31286
United States. Department of State, Foreign Press Centers, Bureau of Public Affairs: http://www.fpc.state.gov/