Debt-for-nature swaps (DNS) can mobilize resources for protecting nature while reducing the debt burden of developing countries. In exchange for debt forgiveness, the debtor-government commits to invest the accrued savings in conservation and/or climate-related expenditures. The transaction is made possible by the willingness of a creditor(s) to forgive the totality or part of the credit rights or to similarly sell the debt outstanding to a third party (typically a conservation organization) at a price lower than the face value. In addition to nature conservation, a number of swap agreements have been used to finance social expenditures, particularly in health and education.
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