Tropical Forest Conservation Act (TFCA) Process: Getting Started
If a country is interested in being considered for benefits under the TFCA program, the process from beginning to end is as follows:
- The finance ministry sends a letter of to the U.S. Treasury expressing interest in the program. This letter does not commit either government to participation in the program.
- The U.S. Treasury acknowledges the letter and informs the finance ministry that the eligibility review will be initiated.
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Forest cover is particularly important for the endemic
Jamaican tody, which builds its nest underground. |
- The U.S. Treasury and the U.S. State Department initiate a review of the country in terms of the economic and political criteria, respectively.
- If the country is declared eligible, the U.S. treasury notifies the country and discusses debt treatment options with the finance ministry.
- The country decides on its preferred option.
- The necessary legal agreements are then negotiated between relevant parties. In the case of the debt reduction/loan restructuring option, two bilateral agreements are negotiated between the U.S. Government and host country (see debt reduction/loan restructuring). In the case of a subsidized debt for nature swap, three agreements are negotiated among relevant parties (see subsidized debt-for-nature swap).
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