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:
“A process of genocide is being carried out before the eyes of the world.”
—Pope John Paul II (b. 1920)
“... in the working class, the process of building a family, of making a living for it, of nurturing and maintaining the individuals in it “costs worlds of pain.””
—Lillian Breslow Rubin (b. 1924)
“We are in the process of creating what deserves to be called the idiot culture. Not an idiot sub-culture, which every society has bubbling beneath the surface and which can provide harmless fun; but the culture itself. For the first time, the weird and the stupid and the coarse are becoming our cultural norm, even our cultural ideal.”
—Carl Bernstein (b. 1944)