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The two main outcomes of a debt-for-nature swap are the reduction of a country's external debt and the enhancement of environmental conservation efforts. In these agreements, a portion of the debt is forgiven in exchange for commitments to invest in environmental protection projects, such as reforestation or biodiversity conservation. This arrangement benefits both the creditor, who reduces their financial risk, and the debtor, who gains financial relief while promoting sustainable development.

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1mo ago

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