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:
“It haunts me, the passage of time. I think time is a merciless thing. I think life is a process of burning oneself out and time is the fire that burns you. But I think the spirit of man is a good adversary.”
—Tennessee Williams (1914–1983)
“The process of writing has something infinite about it. Even though it is interrupted each night, it is one single notation.”
—Elias Canetti (b. 1905)
“Consumer wants can have bizarre, frivolous, or even immoral origins, and an admirable case can still be made for a society that seeks to satisfy them. But the case cannot stand if it is the process of satisfying wants that creates the wants.”
—John Kenneth Galbraith (b. 1908)