Ecuador is set to complete the biggest ever debt-for-nature swap, freeing up cash for conservation of the Galapagos Islands, one of the world’s most precious ecosystems, after Credit Suisse bought up three of its bonds. The old debt will be replaced with a cheaper-to-service US$656 million “Galapagos Bond” maturing in 2041 and insured by the U.S. International Development Finance Corporation. The buyback comes against a backdrop of political turmoil in Ecuador, with the National Assembly seeking to impeach President Guillermo Lasso for alleged embezzlement, which Lasso denies. Unique speciesThe volcanic Galapagos islands lie 600 miles (970 km) off Ecuador’s coast. It’s a good idea for a country that is trying to regain credibility with the market.”Tellimer analyst Stuart Culverhouse estimated that more of Ecuador’s bonds could have been bought.

Source: Bueno Aires Herald May 06, 2023 12:50 UTC