Countries with lower credit ratings are increasingly utilizing debt-for-nature swaps to manage their financial liabilities while supporting environmental conservation initiatives. This trend is gaining traction with the backing of multilateral development banks and an expanding pool of diverse investors, according to Latin Finance.
Joan Prats, a principal financial specialist at the Inter-American Development Bank (IDB), has been at the forefront of structuring guarantees for these transactions in countries like Ecuador, Barbados, and The Bahamas. “We are having many conversations and there is a lot of interest in the region,” Prats noted. “Many countries are interested in doing these types of transactions. At the same time there…
