Debt for nature swaps are designed to relieve developing countries of two devastating problems: spiraling debt burdens and environmental degradation.Ina debt for nature swap, developing country debt held by a private bank is sold at a substantial discount on the secondary debt market to an environmental nongovernmental organization (NGO). The NGO cancels the debt if the debtor country agrees to implement a particular environmental protection or conservation project. The arrangement benefits all parties involved in the transaction. The debtor country decreases a debt burden that may cripple its ability to make internal investments and generate economic growth. Debt for nature swaps may also be seen as a good alternative to defaulting on loans, which hurts the country's chances of receiving necessary loans in the future. In addition, the country enjoys the benefits of curbing environmental degradation. The creditor (bank) decreases its...