Press Releases

Debt For Nature Agreement to Conserve Paraguay's Forests

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The Governments of the United States of America and the Republic of Paraguay today concluded agreements to reduce Paraguay's debt payments to the United States by nearly $7.4 million. In return, the Government of Paraguay has committed these funds over the next 12 years to support grants to conserve and restore important tropical forest resources in the southern corridor of the Atlantic Forest of Alto Parana. Special attention will be given to consolidating and enhancing protected areas within the San Rafael National Park Reserve, which contains the richest diversity of native plants and animals in Paraguay.

The agreements were signed by U.S. Ambassador to Paraguay James Cason and Paraguayan Minister of Finance Ernst Bergen, Minister of Foreign Relations Leila Rachid and Minister of Environment Alfredo Molinas. President of Paraguay Nicanor Duarte Frutos signed the agreements as guest of honor. These debt-for-nature agreements were made possible through a contribution of nearly $4.8 million by the U.S. Government under the Tropical Forest Conservation Act (TFCA) of 1998.

The TFCA provides opportunities for eligible developing countries to reduce concessional debts owed the United States while generating funds to conserve their forests. The agreement with Paraguay marks the ninth TFCA deal concluded under the Bush Administration, following agreements with Belize, Colombia, El Salvador, Jamaica, Panama, Peru and the Philippines. These agreements, together with an agreement concluded with Bangladesh in 2001, will generate over $100 million to protect tropical forests over 10 to 26 years.

 

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