Gabon’s debt-for-nature swap is edging closer to reality as the African nation tests international markets with a $500 million bond deal.
The notes, which are being sold by the Gabon Blue Bond Trust and marketed by Bank of America, are expected to price as soon as Wednesday, according to people familiar with the matter, who asked not to be named because the matter is private.
The new debt will be used to help fund a buyback of existing sovereign debt and finance environmental protection efforts.
Very true. I wonder if there’s any way of preventing debt from ending up in the hands of vulture funds?
There are a few options. Debt should be regularly forgiven, as was done throughout the history of civilization until very recently. Debt on a sovereign level should only be taken in that country’s own currency, so they aren’t forced to sell their goods internationally at cut rate prices to get the foreign currency required to repay the debt. The imperialist Bretton Woods financial institutions must be dissolved, as their policies and iron fists are the drivers of this unproductive and exploitative debt.
Some of these things are becoming options with the BRICS financial institutions, debt policies, and development policies, but none of these things will fully happen at a global level until capitalists are removed from power and regions can develop in the way their people so desire.