An arrangement whereby a foreign debt owed by a developing country is transferred to a particular organization, typically in return for the country's committing itself to specified conservation measures.
Example sentencesExamples
The key outcome of the talks, however, was a package of soft loans and debt swaps amounting to 390 million euros, which Spain has granted to Morocco.
It was the first bilateral debt swap agreement to be signed by the Indonesian and German governments, the embassy said.
Indeed, local banks and pension funds may be wagering that an orderly restructuring - which is what the debt swap really is - is preferable to a messy default that would leave investors much worse off.
But many observers feel that well-negotiated debt swaps give developing countries access to international goodwill and additional financial resources, he added.
The economic justification for debt-for-nature swaps is that they represent one way of acknowledging that preserving rainforests provides a global public good.
Definition of debt swap in US English:
debt swap
(also debt-for-nature swap)
noun
A transaction in which a foreign exchange debt owed by a developing country is transferred to another organization on the condition that the country use local currency for a designated purpose, usually environmental protection.
Example sentencesExamples
Indeed, local banks and pension funds may be wagering that an orderly restructuring - which is what the debt swap really is - is preferable to a messy default that would leave investors much worse off.
The key outcome of the talks, however, was a package of soft loans and debt swaps amounting to 390 million euros, which Spain has granted to Morocco.
But many observers feel that well-negotiated debt swaps give developing countries access to international goodwill and additional financial resources, he added.
The economic justification for debt-for-nature swaps is that they represent one way of acknowledging that preserving rainforests provides a global public good.
It was the first bilateral debt swap agreement to be signed by the Indonesian and German governments, the embassy said.