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United States, Paraguay Sign Pact To Conserve Paraguay's Forests

Grants intended to help conserve and restore tropical forest resources

The United States and Paraguay have concluded an agreement to reduce Paraguay's debt payments to the United States, according to the U.S. Department of State and the U.S. Treasury Department.

In separate, but identically worded, statements issued June 7, the two federal agencies explained that in return for the debt reduction, Paraguay will commit the equivalent funding over the next 12 years "to support grants to conserve and restore important tropical forest resources in the southern corridor of the Atlantic Forest of Alto Parana." Further, "special attention will be given to consolidating and enhancing protected areas in the San Rafael National Park Reserve, which contains the richest diversity of native plants and animals in Paraguay," the agencies said.

U.S. Ambassador to Paraguay James Cason, Paraguayan Minister of Finance Ernst Bergen, Paraguayan Minister of Foreign Relations Leila Rachid and Paraguayan Minister of Environment Alfredo Molinas formally signed the agreement. Also, Paraguay's president, Nicanor Duarte Frutos, signed the agreement as guest of honor at the signing ceremony.

Under the Tropical Forest Conservation Act (TFCA) of 1998, the United States has contributed nearly $4.8 million to facilitate debt-for-nature agreements. "The TFCA provides opportunities for eligible developing countries to reduce concessional debts owed the United States while generating funds to conserve their forests," said the State and Treasury departments.

Both agencies said the agreement with Paraguay follows previous Bush administration agreements with Belize, Colombia, El Salvador, Jamaica, Panama, Peru and the Philippines. The agencies observed that these agreements, "together with an agreement concluded with Bangladesh in 2001, will generate over $100 million to protect tropical forests over [a period of] 10-26 years."

Source: U.S. Department of State

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