IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/393.html
   My bibliography  Save this paper

Debt for nature swaps

Author

Listed:
  • Occhiolini, Michael

Abstract

Debt for nature swaps involve the exchange of a debtor country's external obligation for that country's agreement to use local currency instruments to support a specific environmental project, such as development of conservation management plans, training of park personnel, or environmental education activities. These agreements are often described as deals where everyone benefits : the debtor country reduces its external debt, the environmental group can leverage its original donation amount, and banks profit from selling their debt on the secondary market or from the publicity value of donating the debt to the environmental group. However, this is a too simplistic analysis of debt for nature agreements. This paper examines whether the debtor country and environmental group benefits from the swap compared to the alternative of a straight donation of funds from the environmental group to the developing country, as well as the incentives that commercial banks have to donate, rather than sell, debt to international environmental groups.

Suggested Citation

  • Occhiolini, Michael, 1990. "Debt for nature swaps," Policy Research Working Paper Series 393, The World Bank.
    • Handle: RePEc:wbk:wbrwps:393
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1990/03/01/000009265_3960929004833/Rendered/PDF/multi0page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeremy Bulow & Kenneth Rogoff, 1988. "The Buyback Boondoggle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 19(2), pages 675-704.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohr, Ernst & Thomas, Jonathan P., 1998. "Pooling sovereign risks: The case of environmental treaties and international debt," Journal of Development Economics, Elsevier, vol. 55(1), pages 173-190, February.
    2. Mohr, Ernst, 1992. "The impact of sovereign intertemporal trade and cross-default clauses on the sustainability and efficiency of environmental treaties," Kiel Working Papers 522, Kiel Institute for the World Economy (IfW Kiel).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ms. Magdalena Polan & Parmeshwar Ramlogan & Mr. Carlos I. Medeiros, 2007. "A Primer on Sovereign Debt Buybacks and Swaps," IMF Working Papers 2007/058, International Monetary Fund.
    2. Peter Rowland, 2005. "Buyback of Colombian Sovereign Debt," Borradores de Economia 331, Banco de la Republica de Colombia.
    3. Danny Cassimon & Dennis Essers & Achmad Fauzi, 2014. "Indonesia's Debt-for-Development Swaps: Past, Present, and Future," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(1), pages 75-100, April.
    4. Fernando Broner & Alberto Martin & Jaume Ventura, 2010. "Sovereign Risk and Secondary Markets," American Economic Review, American Economic Association, vol. 100(4), pages 1523-1555, September.
    5. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09i41p71525 is not listed on IDEAS
    6. Mark Aguiar & Satyajit Chatterjee & Harold Cole & Zachary Stangebye, 2022. "Self-Fulfilling Debt Crises, Revisited," Journal of Political Economy, University of Chicago Press, vol. 130(5), pages 1147-1183.
    7. Goldberg, Linda & Spiegel, Mark M., 1992. "Debt write-downs and debt--equity swaps in a two-sector model," Journal of International Economics, Elsevier, vol. 33(3-4), pages 267-283, November.
    8. Fluck, Zsuzsanna, 1999. "The Dynamics of the Management-Shareholder Conflict," The Review of Financial Studies, Society for Financial Studies, vol. 12(2), pages 379-404.
    9. Seon Tae Kim & Gabriel Mihalache & Yan Bai, 2014. "Maturity and Repayment Structure of Sovereign Debt," 2014 Meeting Papers 523, Society for Economic Dynamics.
    10. Juan Carlos Hatchondo & Leonardo Martinez & César Sosa-Padilla, 2016. "Debt Dilution and Sovereign Default Risk," Journal of Political Economy, University of Chicago Press, vol. 124(5), pages 1383-1422.
    11. Mr. Marcos d Chamon & Erik Klok & Mr. Vimal V Thakoor & Mr. Jeromin Zettelmeyer, 2022. "Debt-for-Climate Swaps: Analysis, Design, and Implementation," IMF Working Papers 2022/162, International Monetary Fund.
    12. Demirguc-Kunt, Asli & Huizinga, Harry, 1993. "Official Credits to Developing Countries: Implicit Transfers to the Banks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(3), pages 430-444, August.
    13. Maurice Obstfeld, 1995. "Intenational Currency Experience: New Lessons and Lessons Relearned," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 119-220.
    14. Ralf Hepp, 2005. "Can Debt Relief Buy Growth?," International Finance 0510003, University Library of Munich, Germany.
    15. Oladi, Reza, 2003. "International involuntary lending and contingent default threat," International Review of Economics & Finance, Elsevier, vol. 12(2), pages 237-245.
    16. Ethan Ilzetzki & Heidi Christina Thysen, 2024. "Fiscal Rules and Market Discipline," Discussion Papers 2409, Centre for Macroeconomics (CFM).
    17. Jérôme Sgard, 2011. "The IMF Meets Commercial Banks: Sovereign Debt Restructuring between 1970 and 1989," SciencePo Working papers Main hal-03473808, HAL.
    18. Goopu, Sudarshan, 1996. "The analysis of emerging policy issues in development finance," Policy Research Working Paper Series 1589, The World Bank.
    19. Anis Chowdhury & Jomo Kwame Sundaram, 2023. "Chronicles of Debt Crises Foretold," Development and Change, International Institute of Social Studies, vol. 54(5), pages 994-1030, September.
    20. Cohen, Daniel & Verdier, Thierry, 1995. "'Secret' buy-backs of LDC debt," Journal of International Economics, Elsevier, vol. 39(3-4), pages 317-334, November.
    21. Joshua Aizenman & Kenneth M. Kletzer & Brian Pinto, 2005. "Sargent-Wallace meets Krugman-Flood-Garber, or: why sovereign debt swaps do not avert macroeconomic crises," Economic Journal, Royal Economic Society, vol. 115(503), pages 343-367, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:393. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.