Debt-for-Nature Exchange Law and Legal Definition

Pursuant to 22 USCS § 2281 [Title 22. Foreign Relations And Intercourse; Chapter 32. Foreign Assistance; International Development; Debt-For-Nature Exchanges], the term debt-for-nature exchange means “the cancellation or redemption of the foreign debt of the government of a country in exchange for--

(1) that government's making available local currencies including through the issuance of bonds which are used only for eligible projects involving the conservation or protection of the environment in that country as described in section 463 [22 USCS § 2283]; or

(2) that government's financial resource or policy commitment to take certain specified actions to ensure the restoration, protection, or sustainable use of natural resources within that country; or

(3) a combination of assets and actions under both paragraphs (1) and (2).”