Process
The financing mechanism for debt-for-nature swaps is an agreement among the funder(s), the national government of the debtor country, and the conservation organization(s) using the funds. The national government of the indebted country agrees to a payment schedule on the amount of the debt forgiven, usually paid through the nation’s central bank, in local currency or bonds. The process is shown in Figure 1. Participation in debt-for-nature swaps has been restricted primarily to countries where the risk of default on debt payments is high. In these circumstances, the funder can purchase the debt at well below its face value.
Read more about this topic: Debt-for-nature Swap
Famous quotes containing the word process:
“The process of discovery is very simple. An unwearied and systematic application of known laws to nature causes the unknown to reveal themselves.”
—Henry David Thoreau (1817–1862)
“A designer who is not also a couturier, who hasn’t learned the most refined mysteries of physically creating his models, is like a sculptor who gives his drawings to another man, an artisan, to accomplish. For him the truncated process of creating will always be an interrupted act of love, and his style will bear the shame of it, the impoverishment.”
—Yves Saint Laurent (b. 1936)
“Any balance we achieve between adult and parental identities, between children’s and our own needs, works only for a time—because, as one father says, “It’s a new ball game just about every week.” So we are always in the process of learning to be parents.”
—Joan Sheingold Ditzion, Dennie, and Palmer Wolf. Ourselves and Our Children, by Boston Women’s Health Book Collective, ch. 2 (1978)