debt reduction by HICs

• most of the countries with tropical rainforest are NEEs or LICs and may have large debts, resulting from overseas aids in the forms of loans
• schemes known as debt-for-nature swaps are sometimes arranged in 2010 for example, the USA signed an agreement to convert a brazilian debt of £13.5 million into a fund to protect large areas of tropical rainforest
• these swaps are all part of what is known more widely as debt reduction, where some HICs agree to write off the debts of some poorer LICs
• the idea was first suggested in the 1980s by an amazonian biologist and conservationist, Tim lovejoy
• swaps are usually between governments, often with the USA based on the tropical rainforest conservation act 1988
• the amazon rainforest is mostly located in brazil (60%) but 13% exists in Peru, 10% in Colombia and the rest in 6 other countries
• in 2006 the USA agreed debt forgiveness with colombia of $10 million over 12 years to protect their section of the amazon rainforest
• colombia put half the debt towards financing local initiatives and the other half to the heritage trust that the government used