Sustainable Blue Economies
OFC raises its capital in a blended finance approach from sources that value the positive impact the initiative has on oceans.
Capital is provided to governments as loans at or below commercial market rate on terms to be agreed between OFC and government, on the basis that the availability of the loans will be linked to a commitment from such governments to take positive action in respect of protecting its oceans resources.
The funding provided by OFC can be applied to either (a) finance national budget deficits; (b) refinance maturing debt or a loan paid before the redemption date; (c) obtain foreign currency; (d) maintain credit balances ;(e) regulate internal monetary conditions should the necessity arise; or (f) any other purpose approved in terms of national budgeting purposes.
OFC applies a portion of the repayments it receives from government in respect of the loan to fund the management, enhanced levels of protection and expansion of the marine protected areas (MPAs) and playing an active role in the management of the MPAs, either as the principal operator, or in partnership with the existing management authorities to deliver the benefits of, inter alia, fish abundance, carbon sequestration, ecosystem restoration and resilience as well as growth of industries associated with the ocean.
Given the fiscal pressures occasioned by a slower economy, additional COVID-19 expenditure, weakening currencies and growing government debt servicing costs, the OFC proposal provides governments with a financial solution that will: