Finance Secretary Cesar V. Purisima and Italian Ambassador H.E. Luca Fornari signed on May 29, 2012 the Debt-for-Development Swap Agreement (the Agreement) between the Government of the Republic of the Philippines and the Government of the Italian Republic.

Through the agreement, the total current outstanding loan of the Philippine Government with the Italian Government amounting to EUR2,916,919.45 (about Php158 million, including interest) will be converted to fund eligible development projects to be jointly agreed and selected by both governments. The debt conversion program will run for about five (5) years.

The funds resulting from the debt swap operations will be used to support projects defined at the local level that promotes poverty reduction, socio-economic sustainable development and environmental protection. Priority will be given to the sector of eco-region/ biodiversity conversation, in a context of effective social participation of local communities and sustainable resource use. Target areas are provinces with the highest poverty rates in the country. Eligible recipients of the fund are government agencies, local government units, local community-based organizations in the field of development and environment protection and Philippine and/or Italian Civil Society Organizations.

A Management Committee composed of the representatives of the Philippine and Italian Governments, through the Department of Finance and the Italian Embassy in Manila, respectively, will lead the implementation of the Agreement, including issuance of call for proposals/ implementation arrangements, selection and approval of projects.

For further questions, please contact Usec. Lea de Leon (IFG-DOF).