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MANILA – Money meant to repay outstanding debts to Italy can soon be used to fund development projects in the Philippines instead.
In a statement, the Department of Finance on Wednesday said Secretary Cesar V. Purisima and Italian Ambassador H.E. Luca Fornari signed the Debt-for-Development Swap Agreement on May 29.
Under the agreement, the Philippines’ total outstanding loan of 2,916,919.45 euros – or about P158 million, including interest - will be converted to fund projects of choice by both governments.
Running for five years, the debt conversion program will support projects that promote poverty reduction, socio-economic sustainable development and environmental protection.
DOF said the program will prioritize projects that focus on "eco-region/ biodiversity conversation, in a context of effective social participation of local communities and sustainable resource use."
The program will benefit provinces with the highest poverty rates.
The fund will be coursed through national government agencies, local government units, as well as community organizations in the field of development and environment protection.
The DOF and the Italian Embassy in Manila will form a management committee that would implement the program and issue calls for proposals.
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