Background

The Philippines has been identified as one of the beneficiaries of a debt conversion program by the Italian Government under its 2011-2013 Programming Guidelines and Directions. This led to the signing of a Debt for Development Swap Agreement between the Philippine Government through the Department of Finance, and the Italian Government through the Italian Embassy on 29 May 2012.

Under the Agreement, the Philippines’ debt obligation amounting to EUR 2,916,919.45 (about US$3.70 million or Php 160 million) was converted to be a Grant for the implementation of development projects focused on environmental protection and poverty reduction in the poorest areas in the Philippines with the effective participation of local communities.

Officially named the Philippines-Italy Debt for Development Swap Program, it aims to support the achievement of the country’s development goals relating to poverty reduction, sustainable development and the protection of the environment.