DEBT SWAP 2-yr extension of PH-Italy debt swap

Italy and Philippines have agreed on the extension of the Philippines-Italy Debt for Development Program for 2 years.

The Italian Embassy in Manila headed by H.E. Ambassador Giorgio Guglielmino and the Department of Finance-International Finance Group headed by Undersecretary Mark Dennis Y.C. Joven, facilitated the 2-Year Extension of the Program through an exchange of letters.

The Philippines was identified as one of the beneficiaries of the debt conversion program by the Government of Italy under its 2011-2013 Programming Guidelines and Directions.

A Debt for Development Swap Agreement between the Philippines and Italy was signed on May 29, 2012 through the Department of Finance and the Italian Embassy in Manila, allowing the conversion of the Philippines’ debt obligation amounting to EUR2,916,919.45 (about $3.75 million or P160 million).

The Debt Swap Program aims to support projects on environmental protection and poverty reduction that are implemented by Philippine/Italian NGOs, National Government Agencies, and Local Government Units. Projects supported by the program have been implemented in Provinces in the Philippines with the highest poverty rates and have been carried out in a context of effective participation of the local communities.

The two-year extension of the program is expected to yield additional alternative livelihood for about 17,000 beneficiaries including farmers and fisherfolks through forest conservation and reforestation activities, sustainable and integrated agricultural practices, better coastal resource management, and more eco-tourism opportunities.