Cabo Verde and Portugal agree groundbreaking debt restructure

Reacting to the announcement that the governments of Cabo Verde and Portugal have agreed a groundbreaking debt restructure to create an environment and climate fund, Tom Mitchell, executive director of IIED, which helped facilitate the agreement, said:

Press release, 24 January 2023

“It’s exciting to see these two countries take this step to address not just Cabo Verde’s debt burden but also the climate and nature emergencies.

“Linking borrowing to protection of the ocean, nature and tourism could ultimately save the lives and livelihoods of people who are already suffering the effects of a warming planet having done the least to cause it.

“This agreement should serve as inspiration for other creditors and debtor nations to harness sovereign debt as part of the solution to the challenges of climate change and biodiversity loss.”

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