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:
“Like a prophet, you are possibly teaching us about the workings of the divine mind, but in the process you are ruining the human mind, dear friend.”
—Franz Grillparzer (1791–1872)
“Science and art are only too often a superior kind of dope, possessing this advantage over booze and morphia: that they can be indulged in with a good conscience and with the conviction that, in the process of indulging, one is leading the “higher life.””
—Aldous Huxley (1894–1963)
“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)