Bahamas readies Caribbean’s next ‘debt-for-nature’ swap

The Bahamas is to join a growing trend where countries promise better protection of precious ecosystems in return for having their debts reduced.

Bahamas economy minister Michael Halkitis told Reuters that a so-called “debt-for-nature” swap would launch in the next two to four months and focus on improving the country’s network of marine parks and protected areas.

The country’s prime minister had signaled a deal was on the cards earlier this year – nearby Barbados, Belize and Ecuador have all completed debt-for-nature swaps in recent years – but Halkitis’ comments are the first firm outline of the Bahamas’ plan.

The swap will involve less than $500 million of debt. The country has $2.9 billion of international bonds , outstanding in total, meaning it could still involve well over 10% of it.