Multi-billion dollar debt deals aimed at protecting vital African and Latin American ecosystems are potentially at risk, with concerns that the U.S. will end its backing of debt-for-nature swaps. Speaking to Reuters, a source with direct knowledge of the plans said that the U.S. International Development Finance Corporation (DFC) has about five swaps in the pipeline which are now in question. The DFC provides political risk insurance for over half of the climate swap deals over the last five years, accounting for nearly 90% of $6 billion of swapped debt, with incoming CEO Ben Black and former U.S. government efficiency chief Elon Musk critical of the Department’s climate work. Angola and Zambia and at least one Latin American country are among those whose plans risk being reworked or even abandoned. Angola’s Finance Minister Vera Daves de Sousa is communicating with the DFC. “We feel openness from them (DFC), but especially on the debt-for-development swap,” said de Sousa.
