The Government clarifies the scope of the Blue Bonds in the Galapagos Islands: there is no loss of sovereignty

Government clarifies scope of Galapagos Life Fund

The Ecuadorian Government has issued a statement clarifying the scope of the Galapagos Life Fund, ruling out any transfer of sovereignty in the islands. The announcement follows the signing of an international financing agreement between Ecuador and Credit Suisse on 9 May, which includes the issuance of blue bonds to finance conservation and protection of marine ecosystems in the region. The government has denied allegations of loss of sovereignty in the Galapagos, after a trend on social media fueled opposition to decree 735, which established the formation of the non-profit corporation responsible for managing the Galapagos Life Fund.

Insights from Jacobin magazine analysis

The socialist analysis magazine, Jacobin, prompted the accusations of lost sovereignty when it claimed in a publication that Ecuador ceded its sovereign rights in exchange for the reduction of its national debt. Jacobin questions the governance legitimacy of the corporation, established in Delaware, with no clear mandate. In response, the government has defended its actions, stating that investments in the Galapagos Life Fund will come from foundations and not public funds, thus avoiding political influences that could misuse resources.

Ecuador’s blue bond debt swap

By reducing its external debt by 5% with a debt swap, Ecuador secured financing for the blue bonds signed with Credit Suisse bank. These bonds are intended to finance development projects for the conservation and protection of marine ecosystems in the Galapagos Islands. However, the government stresses that the lack of sovereign loss in the area is important to them and that foreign powers or interests will never be above the constitution in matters relating to the Galapagos.

Structure of the non-profit corporation

Jacobin’s article claims out of the eleven directors of the Galapagos Life Fund, six are foreign and include for-profit investment manager Climate Fund Managers, through a subsidiary. The Ecuadorian government clarified that eight of the directors are Ecuadorian, with a balance provided by the government authorities of Galapagos, Artisanal Fishermen Association, university schools, and the Galapagos Chamber of Tourism. The corporation has already convened and developed their efforts towards responsible and effective management.

Related news on Galapagos

Among other related news, there is a foreign debt swap through blue bonds raising concerns about Galapagos sovereignty, Ecuadorian navy ships will supply liquefied gas to the area, and there is news that gas and food shortages have worsened in the region.

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