In recent years, China has disbursed tens of billions of dollars in emergency loans and debt restructuring packages to provide relief for countries around the world at risk of financial crises. The bilaterally-agreed bailouts are often on Chinas own terms, but increasingly, the major creditor has been pressed to consider a new proposal that it is finding harder to navigate debt-for-nature swaps.
Such swaps, emerging as a potential financial tool that will lighten the debt commitments of low- and middle-income economies, essentially see a portion of debt reduced in exchange for resources put towards climate and nature conservation work. In May this year, Ecuador pulled off a record US$1.1 billion debt-for-nature swap to protect its uniq…
Read the full article at: https://www.eco-business.com/news/is-china-ready-to-play-larger-role-in-debt-for-nature-swaps-to-help-nations-facing-climate-and-debt-distress/