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 moralist and the revolutionary are constantly undermining one another. Marx exploded a hundred tons of dynamite beneath the moralist position, and we are still living in the echo of that tremendous crash. But already, somewhere or other, the sappers are at work and fresh dynamite is being tamped in place to blow Marx at the moon. Then Marx, or somebody like him, will come back with yet more dynamite, and so the process continues, to an end we cannot foresee.”
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“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)