Eligibility Requirements for TFCA Agreements

While there are few, if any, congressionally appropriated funds for the Tropical Forest Conservation Act (TFCA) program remaining, it may be informative to understand which countries qualified and what criteria were used in their selection. To be eligible for TFCA (and for EAI), a developing country must have tropical forests, owe the U.S. Government qualifying debt, and meet certain political and economic criteria.

Treatable debt is official debt owed to the U.S. Government that is outstanding as of January 1, 1998 as a result of: 

  • concessional loans made to an eligible country by the U.S. under part I and part II (chapter 4) of the Foreign Assistance Act of 1961, or;
  • credits extended under Title I of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 et seq.).

To be eligible, a country must meet certain political criteria:

  • Have a democratically elected government
  • Cooperate with the U.S. on drug control
  • Not support terrorism
  • Not violate internationally recognized human rights

To be eligible, a country must meet certain economic criteria:

  • Have an International Monetary Fund (IMF) program or equivalent
  • Have a World Bank (International Bank for Reconstruction Development - IBRD) or International Development Association (IDA) structural/sectoral loan or equivalent
  • Have investment reforms in place or show significant progress to that end. For example, a bilateral investment treaty with the United States or a World Bank/Inter-American Development Bank (IDB) supported investment program
  • If appropriate, have satisfactory financing program with commercial lenders
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Last updated: August 15, 2017

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