El Salvador commits savings from creative debt refinancing to river conservation

Associated Press

SAN SALVADOR, El Salvador (AP) — One of Central America’s longest rivers will be the primary beneficiary of El Salvador’s deal to refinance $1 billion of debt with support from the United States government, in the latest example of a resurgence in what are known as debt-for-nature swaps. In the deal announced by both governments this week, El Salvador committed the $350 million it will save to conservation projects benefitting the Lempa River, which provides two-thirds of the country’s water supply. The river’s watershed is threatened by deforestation and unsustainable agricultural practices. Some of the tributaries have gone dry from too much water being diverted and very little of the water used for industry or sanitation is treated.