Ecuador Completes Second Debt-for-Nature Swap

Ecuador has successfully completed its second debt-for-nature swap, converting part of its $1.5 billion external debt into a financing mechanism aimed at protecting the Amazon rainforest, securing $460 million for conservation efforts. This initiative, supported by The Nature Conservancy and other financial institutions, is expected to yield significant savings of over $800 million by 2035 through reduced debt servicing costs. The Amazon Biocorridor Program will manage 4.6 million hectares of protected areas and safeguard an additional 1.8 million hectares, while also protecting 18,000 kilometers of rivers. The deal is projected to generate $23.5 million annually for 17 years, with most funds directed to the conservation program. Minister of Environment Inés Manzano highlighted the program's transformative vision for protecting one of the planet's most biodiverse ecosystems. This innovative approach reflects a growing trend among developing nations to leverage debt restructuring for environmental sustainability.