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Commonwealth
Forests | | |
 DEBT-FOR-NATURE SWAPS
A method of financing conservation projects in developing countries is through debt-for-nature
swaps. Conservation and other international organizations purchase a portion of a developing
country's commercial debt at a discount, or else persuade creditor banks to donate some of
debt. Foreign debt can be purchased at 50 to 90 percent of its actual value and sometimes far
less.
In 2006 two African countries agreed debt for nature swaps. The first was brokered by WWF
between Cameroon and France in June 2006 (WWF Press Release, 22.6.06), while the
second, a Tropical Forest Conservation and Debt Reduction Agreement, was signed between
Botswana and the USA (The Voice, Francistown, 10 October 2006)
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