World News | The Bahamas Will Refinance Part of Its Debt to Protect Its Famous Turquoise Waters

San Juan (Puerto Rico), Nov 22 (AP) The Bahamas announced Friday that it will refinance USD 300 million of its external debt to free up more than USD 120 million for marine conservation projects and climate change mitigation.

It is the fifth such debt-for-nature swap in the world, with the Bahamian government signing the deal with The Nature Conservancy, the Inter-American Development Bank and other financial partners.

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“We see this project not just supporting the biodiversity and climate objectives of the country, but ultimately the economy and livelihoods of many, many folks,” Shenique Albury-Smith, the Bahamas-based deputy director for The Nature Conservancy, told The Associated Press.

The deal involves buying back the existing debt via a new loan by Standard Charter with reduced interest rates, a move expected to free up some USD 124 million in funding. That money will be used for marine conservation projects for the next 15 years.

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An endowment fund also will be created to secure financing for the projects after the 15 years are up. Overall, the Bahamas holds some USD 5.7 billion in external debt.

The Seychelles, Belize, Gabon and Barbados previously signed similar deals, said Melissa Garvey, global director for The Nature Conservancy's bond programme.

Together, the deals protect conservation areas larger than the Gulf of Mexico, she said.

In addition, climate change mitigation would help protect the low-lying archipelago that is still struggling to recover from Hurricane Dorian, which hit as a powerful Category 5 storm in 2019.

The Bahamas already has a strong conservation history: more than 17 per cent of coastal waters are protected, representing more than 6 million hectares (16 million acres) of the world's ocean.

In 1958, the Bahamas established the world's first protected land and sea park at Exuma Cays. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)