PHL, Italy extend debt swap program for 2 years

The governments of the Philippines and Italy on Monday agreed to a two-year extension of a debt conversion program which funds environmental protection and poverty reduction projects.

The Philippines-Italy Debt for Development Program, initially signed on May 29, 2012, paved the way for the conversion of the Philippine debt obligation amounting to P160 million.

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 led a recent exchange of letters. 

Two out of the nine local projects funded by the debt swap program have been completed and implemented by various Philippine and Italian non-government organizations, national government agencies, and local government units.

One was a 15-hectare reforestation initiative in Tabuk City, Kalinga where indigenous people have also been provided livelihood activities. Another was an eco-tourism project in Puerto Princesa’s Underground River.

Seven other development projects are expected to receive support from the two-year extension of the debt conversion program.

The Department of Finance claims that around 17,000 beneficiaries, including those from the agriculture sector, are set to enjoy alternative livelihood opportunities that will be opened through the extended program. —Dona Magsino/VDS, GMA News