REUTERS/Toby Melville/File Photo Acquire Licensing RightsMARRAKECH, Morocco, Oct 10 (Reuters) - Barbados is hoping to execute a "debt-for-climate" swap early next year to secure savings of around $300 million over a 15 year period to fund clean water supplies, the island state's finance minister told Reuters on Tuesday.
In September 2022, Barbados carried out a "debt-for-nature" swap, which saw $150 million of international bonds swapped for cheaper debt, generating $50 million for marine conservation.
The savings from the island's mooted "debt-for-climate" swap will be used to upgrade a water treatment plant to help better manage water resources and improve food security, Straughn said.
Barbados's previous debt-for-nature swap funnelled money towards protecting and rehabilitating the surrounding Caribbean sea.
A debt-for-climate swap would be an almost completely new concept, though, and one that other climate change vulnerable countries are likely to want to explore.
Persons:
Toby Melville, Ryan Straughn, Straughn, We've, Rachel Savage, Marc Jones, Aurora Ellis
Organizations:
REUTERS, Rights, Inter, American Development Bank, European Investment Bank, International Monetary Fund, Thomson
Locations:
Bridgetown, Barbados, Rights MARRAKECH, Morocco, Marrakech