• Activates marine conservation and climate change adaptation initiative

The government of Seychelles has announced that it has completed a buyback of approximately US $21.4 million of its Paris Club debt and launched a partnership to protect the country’s marine resources and build resilience against the effects of climate change.

Seychelles bought back 100% of the maturities falling due to participating Paris Club creditors through to mid 2022 at a discount to face value, as per the agreement reached with the Paris Club in February 2015.

This buyback was financed by generous grants from a group of international marine conservation foundations and a loan from The Nature Conservancy (TNC).

Going forward, the government will repay the same amount of debt bought back from the Paris Club on concessional terms to a local non-governmental organisation, the Seychelles Conservation and Climate Adaptation Trust (SEYCCAT). SEYCCAT will use this cash flow to fund critical marine conservation and climate change adaptation work in Seychelles and to service the TNC loan. SEYCCAT’s funding decisions will be made according to a clearly defined remit by its board, on which the government and both international and local non-governmental organisations enjoy equal representation.

As well as forming the building block of a self-sustaining financing mechanism for much-needed environmental work, the buyback of Paris Club debt will also smooth out the repayment profile of Seychelles’s official bilateral debt, while increasing the proportion of debt that can be serviced in local currency.

At a time when threats to the marine and coastal environment and its natural resources are on the increase, this new financing mechanism is critical in providing reliable and additional financing to build resilience and sustain livelihoods.  Instead of waiting for financing under the global climate change financing mechanism, which has been very slow in happening, Seychelles has once again taken the initiative.

“I have seen erosion, storms and floods increase, affecting the health of our communities and their ability to sustain livelihoods,” said President James Michel. “Together, we are making a difference. A difference that brings the best outcomes for Seychelles … and a difference that places nature at the centre of solutions for climate change and sustainable development.”

The 154,000 square miles committed by Seychelles will protect important species like the hawksbill sea turtle, safeguard the country’s most important natural resource, and become the largest network of marine protected areas in the Indian Ocean.

Commenting on the debt buyback, Jean-Paul Adam, Minister for Finance, Trade & the Blue Economy, said: “We are delighted to have been able to bring this innovative transaction in support of our Blue Econonomy to a successful closing. As a small, open economy, Seychelles is determined to break new ground in its efforts to reduce its vulnerability while proactively managing its debt stock. The partial buyback of our Paris Club debt and extension of the average life of our debt shows that our leadership in environmental conservation can create tangible benefits at a time when financing for many emerging market economies has come to a standstill. We extend our appreciation to all those partners that made this operation possible, including the Paris Club, those foundations that extended grants to SEYCCAT, and to the TNC.”

Forrás: www.nation.sc