US Signs Debt Reduction Agreement With Panama

by Mike Godfrey, Tax-News.com, Washington

23 August 2004

The governments of the United States of America and the Republic of Panama announced on Thursday that, together with The Nature Conservancy, they had signed a second round of agreements reducing Panama's debt to the United States and generating nearly $11 million for tropical forest conservation over the next 12 years.

The agreements were signed by United States Ambassador to Panama, Linda Watt, Panamanian Finance and Economy Minister Norberto Delgado, and The Nature Conservancy Panama Program Director George Hanily.

The agreements were made possible through a grant of $6.5 million from the United States government and a contribution of $1.3 million from The Nature Conservancy, and the funds will be used to conserve the biologically rich forest resources of the Darien National Park, bringing to $21 million the total funds made available to Panama for conservation purposes under the Tropical Forest Conservation Act.

The first debt-for-nature swap with Panama, signed in 2003, will generate $10 million over 14 years to conserve Chagres National Park in the Panama Canal watershed.

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