October 17, 2007
HP-616

Treasury Announces Debt for Nature Agreement to Conserve Costa Rica’s Forests

Washington, DC-- The Governments of the United States of America and Costa Rica, the Central Bank of Costa Rica, Conservation International and The Nature Conservancy, have concluded agreements to reduce Costa Rica's debt payments to the United States by $26 million over the next 16 years.  In return, the Central Bank of Costa Rica has committed to pay these funds to support grants to non-governmental organizations and other groups to protect and restore the country's important tropical forest resources. 

The debt for nature program was made possible through contributions of over $12.6 million by the U.S. Government under the Tropical Forest Conservation Act of 1998 and a combined donation of over $2.5 million from Conservation International and The Nature Conservancy. 

The funds will help conserve several important forest areas in Costa Rica.  The Osa Peninsula is home to the scarlet macaw and many other bird species, as well as to the squirrel monkey and jaguar.  The La Amistad region contains the most extensive tract of untouched forest in the country and is the source of much of Costa Rica's fresh water.  The Maquenque Wildlife Refuge area is home to the great green macaw, while the Tortuguero region contains a rich variety of forest ecosystems.  The area north of Rincon de la Vieja contains dry forest, cloud forest, and rain forest.  Nicoya Peninsula's dry forests and mangroves are important to the preservation of water resources in the region. 

The Tropical Forest Conservation Act provides opportunities for eligible developing countries to reduce concessional debt owed the United States while generating funds to conserve their forests.  The program with Costa Rica, the largest of the funds created to date, marks the 12th established under the Bush Administration, following agreements with Belize, Botswana, Colombia, El Salvador, Guatemala, Jamaica, Panama (2), Paraguay, Peru and the Philippines.  These programs, together with one established with Bangladesh in 2000, will generate more than $163 million over 10-25 years to protect tropical forests.