Highlights: Ecuador's current debt of $1.63 billion has been reduced by almost $656 billion, or $<> million. The country has reached an agreement with Credit Suisse and the IDB to obtain debt reduction. In return, the country's authorities will have to put in place ecological measures. Of these savings of about one billion dollars, for example, nearly $450 million will be devoted to the conservation of the Galapagos, an Ecuadorian archipelago in the Pacific.

This reduction of Ecuador's debt was made possible by an agreement with Credit Suisse and the Inter-American Development Bank (IDB).

Ecuador reduces debt by one billion by committing to nature protection

The Galapagos has one of the most fragile ecosystems, with flora and fauna unique in the world. ASSOCIATED PRESS - Dolores Ochoa

Text by: RFI Follow

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This reduction of Ecuador's debt was made possible by an agreement with Credit Suisse and the Inter-American Development Bank (IDB).

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Ecuador's current debt of $1.63 billion has been reduced by almost $656 billion, or $<> million. The country has reached an agreement with Credit Suisse and the IDB to obtain debt reduction. In return, the country's authorities will have to put in place ecological measures. This is a novel mechanism.

Of these savings of about one billion dollars, for example, nearly $450 million will have to be devoted to the conservation of the flora and fauna of the Galapagos, an Ecuadorian archipelago in the Pacific. It is a biodiversity paradise with unique wildlife. They take their name from the giant tortoises that live there. Their fragile ecosystem is a World Heritage Site and inspired the English scientist Charles Darwin to write his theory of the evolution of species in the nineteenth century.

The debt-nature exchange is a historic step that marks a before and after in the environmental and economic development of the country " said Environment Minister Jose Antonio Davalos. "This financial mechanism demonstrates Ecuador's strong commitment to engage in a green transition to a productive, inclusive and sustainable economy," the government said.

Petroleum

But this announcement is contrasted by the policy of Guillermo Lasso's government. Crude oil is Ecuador's main export product, at a rate of nearly 500,000 barrels per day. And when President Guillermo Lasso came to power in 2021, he promised to double production to one million barrels a day, despite opposition from indigenous populations and environmentalists.

Oil exploitation in Ecuador, however, could take a hit in the wing. After ten years of fighting, the ecologists have finally obtained satisfaction. The Constitutional Court has just given the green light, to a referendum, on the continuation of oil exploitation in the Amazon part of the country.

Ecuador reduces debt by one billion by committing to nature protection

Ecuador reduces debt by one billion by committing to nature protection

Petroleum

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