October 2, 2006
HP-125

Debt for Nature Agreements to Conserve
Guatemala’s Forests

The Governments of the United States of America and the Republic of Guatemala, together with The Nature Conservancy and Conservation International Foundation, have concluded agreements which will reduce Guatemala's official debt to the United States and generate $24 million to conserve tropical forests in Guatemala.  The Government of Guatemala has committed these funds over the next 15 years to support grants to non-governmental organizations and other groups to protect and restore the country's important tropical forest resources.  The agreements were made possible through contributions of over $15 million by the U.S. Government under the Tropical Forest Conservation Act (TFCA) of 1998 and $2 million total from Conservation International and The Nature Conservancy. 

The funds will help conserve Guatemala's high altitude cloud forests, rain forests, and coastal mangrove swamps, which are home to hundreds of species of songbirds and waterfowl that migrate between the United States and Guatemala, as well as many rare and endangered species, including the resplendent quetzal bird, jaguars and margays.   

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 Guatemala marks the 10^th TFCA deal concluded under the Bush Administration, following agreements with Belize, Colombia, El Salvador, Jamaica, Panama (2), Paraguay, Peru and the Philippines.  These agreements, together with an agreement concluded with Bangladesh in 2000, will generate more than $125 million over 10-25 years to protect tropical forests.  The deal with Guatemala is the largest in the history of the U.S. Government's program under the TFCA.