Peru promotes the conservation of tropical forests and environmental projects through debt swap for an amount exceeding US$19 million, the
These agreements formalize Peru's Foreign Debt Swap with the United States for a total amount of US$19,577,440 with the aim of promoting the conservation of tropical forests and environmental projects.
The
Debt Swap Program —within the framework of the
TFCCA—
allows low- and middle-income countries to convert part of the concessional debt they owe to the United States into local currency so as to allocate it to finance projects for the conservation of tropical forests and the environment.
Thus, the foreign debt swap operation will allow the resources that were allocated in the Peruvian public budget for the payment of foreign debt obligations to the United States Government to be deposited in a Countervalue Fund aimed at financing projects for the protection of tropical forests in Peruvian territory.
The total amount of the debt to be swapped, which includes what is owed for principal and interest, will be deposited in the Countervalue Fund, in a national financial entity —in accordance with the original maturity schedule.
Therefore, the Peruvian debt pending payment to the United States Government will be reduced as long as deposits are made in the aforementioned Countervalue Fund.