United States, Peru Announce Debt-for-Nature Agreement The United States has agreed to redirect $25 million of Peru’s debt into local funds to protect the country’s tropical forests, the State Department announced October 20. The debt-for-nature agreement was made possible by the federal Tropical Forest Conservation Act (TFCA) of 1998. Peru will become the largest beneficiary under the TFCA program, with more than $35 million generated for environmental conservation. Eleven other countries also participate in the program, which is administered by three U.S. government agencies — the State and Treasury departments and the U.S. Agency for International Development (USAID). In a debt-for-nature agreement, countries redirect their debt payments to the United States into local funds that administer competitive grants that support forest conservation, according to James Hester, agency environmental coordinator at USAID and director of the Office of Natural Resource Management. Grants are awarded to nongovernmental and other local organizations for a broad range of conservation activities. The new Peru agreement marks the 14th TFCA pact....