The United States of America, the Republic of Peru, and four non-governmental organizations-Conservation International (CI), The Nature Conservancy (TNC), Wildlife Conservation Society (WCS), and World Wildlife Fund (WWF)- have finalized debt-for-nature swap and forest conservation agreements under the Tropical Forest and Coral Reef Conservation Act (TFCCA). The agreements will reduce Peru’s debt payments to the United States Government by over $20 million over the next 13 years. The Government of Peru will redirect the payments they would have otherwise made to meet their debt obligation to a conservation fund that will provide grants to protect and restore the country’s tropical forests. Local NGOs will use these grants to support projects that directly benefit the Peruvian Amazon and the people of Peru.
The debt swap is made possible through contributions of $15 million by the U.S. Government under the TFCCA and a combined donation of $3 million from four international non-governmental organizations. Grants provided under the TFCCA program will support activities such as conserving protected areas, improving natural resource management, and supporting the development of sustainable livelihoods for communities that rely on forests.
This is the third debt-for-nature swap between the United States and Peru. The first two swaps occurred in 2002 and 2008 and together generated about $36 million, for the restoration, conservation, management, and sustainable use of tropical forests.