FSSI Debt Swap Experience_09

8/14/2019 FSSI Debt Swap Experience_09

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The FSSI Debt-Swap Story

Foundation for a Sustainable

Society


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Our Roots

Philippine Debt

to the SwissGovernment

50% PaymentCancelled

50% CounterpartFund

FSSI

EndowmentFacility

Product of a debtrelief program as aresult of aparticipative, cross-sectoral, multi-level

campaign

Just andsustainable society!

Three-yearscompletion
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negotiations

at different levels

Swiss NGOs and Swiss

Government

Swiss NGO and Phil NGOs

Phil NGOs and Phil Government

Swiss Government and Philippine

Government
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How it began..

Broad based national debt campaign led by

Swiss NGOs was launched in 1989

6 major organizations and 18 smaller

organizations formed an alliance

Campaign Objectives

Obtain substantial reduction of bilateral

debt between Switzerland and poorerdeveloping countries

To raise public awareness on the

consequences of debt problem to people

of poorer countries


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Basic Proposition

Developmentrequires debt relief
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The Petition

Establish a fund to write-off bothofficial debt owed to governmentand to private banks by low-incomecountries

That part of the funds be convertedinto local currency to finance localdevelopment programmes

For the Swiss government to promotedebt relief in the international level

To advocate fair economic relations

with the underdeveloped anddevelo in countries
http://images.google.com.ph/imgres?imgurl=http://www.returnthemarbles.com/petition-icon.png&imgrefurl=http://www.returnthemarbles.com/&usg=__EWWsz5kBHx17deUSmkoUBgMIc44=&h=128&w=128&sz=10&hl=tl&start=56&tbnid=_2yID-U_lngFJM:&tbnh=91&tbnw=91&prev=/images%3Fq%3Dpetition%2Bweb%2Bicon%26gbv%3D2%26ndsp%3D20%26hl%3Dtl%26sa%3DN%26start%3D40http://images.google.com.ph/imgres?imgurl=http://www.returnthemarbles.com/petition-icon.png&imgrefurl=http://www.returnthemarbles.com/index.php&usg=__1mvtUCgxhmWZ2QXGb1GfKRTQjmA=&h=128&w=128&sz=10&hl=tl&start=13&tbnid=_2yID-U_lngFJM:&tbnh=91&tbnw=91&prev=/images%3Fq%3Dpetition%2Bicon%26gbv%3D2%26hl%3Dtl


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The Response

250,000 (4% of Swisspopulation) individuals

signed the petition

Passage of debt relief bill inMarch 1991

Establishment of the SwissDebt Reduction Facility

(SRDF)


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Eligibility of Potential Beneficiariesfor the Debt Swap

2. Highly indebted low-income countries3. All least developed country

4. Country with major bilateral developmentcooperation programmes

5. Debtor country must: Practice good governance Engaged in a medium-term economic

reform programme Have an effective debt management,

including a comprehensive program forobtaining debt reduction & consolidationwith different creditors

6. Volume of debt relief should be sufficientlylarge so as to have significant impact on thecountrys growth and development prospects


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Creative Debt ReliefConcept

Redemption of external debt in localcurrency into a Counterpart Fund (CPF)for development programmes

Macroeconomic benefits derived from debtreduction are passed on to the micro-level

Focuses on creating long-term financial

instruments (capital or trust funds) Substantial participation of & benefits to NGOs

& citizens group


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DebtRelief Scheme

2.Bilateral debt relief agreement

3.Body responsible for the

management of the CounterpartFund (CPF)

4.Projects and programs to be

submitted for funding5.Development Partnership

PHILIPPINES


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PHILIPPINES:The Processes that Took Place....

Establishment of DevelopmentPartnership

1992 initial contact of the Debt for

Development Unit (DDU) of the Swiss Coalitionwith Phil NGOs

Swiss Coalition CODE-NGO partnership

Data gathering pertinent to Philippine bilateraldebt to Switzerland

Study of existing Philippine NGO-managed FundMechanism PCHRD, PDAP, UNDP-GEF-SGP and

PHILIPPINES


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Program Preparation

Series of consultations among Phil NGOs

and POs regarding the design of the

CPF As endowment fund only interest will be

used for grants and loan

Criteria for projects to be supported environment friendly, gender sensitive, for

disadvantaged sectors, improve social,

ecological and economic status

Support shall be open to all NGOs and POs


PHILIPPINES


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Fact Finding Mission (May-June93) Amount: Sfr15-20 million

CPF payment will be in the form of treasury billsby the Central Bank

FSSI submitted a letter on behalf of thePhilippine NGOs urging the Swiss government tosign the agreement

Jan-Feb 95 the two Governments finally met

in Manila. PHIL Department of Finance and Central

Bank of the Philippines

SWISS- Swiss Federal Office of ForeignEconomic


PHILIPPINES


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Final Negotiation Swiss government cancels all its bilateral

rescheduled

non-official debt against the payment bythe Philippines of an amount in localcurrency to FSSI

CPF will be 50% of the external debt to be

used to support sustainable productionprojects

New foundation shall be created tomanage the fund, thus FSSI

The two Governments will sit as ex-officio



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To be the leading eco-enterpriseresource institution for the

empowerment of marginalized

communities in the Philippines

Our Mission


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AF

APPEND

CONVERGENCE

FDC FPSDC

GREEN FORUM

HELVETAS

HEKS

MASS-SPECC

MINCODE

NASSA

NATCCO

NCCP

NCSD PBSP

PHILDHRRA

PHILNET-RDI

PHILSSA

VCF

WAND

Our People


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SI is able to reach the poor

Coco-coir Business IntegrationandDevelopment ProgramFund for Sustainable Civil SocietyProgram

Micro Finance for Eco-EnterprisesProgram

Sustainable Partnership for Eco-Enterprise Development Program

Sustainable Waste ManagementEco-Enterprise Program


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Increased social investments

Over Php443million in

socialinvestmentsprovided tomore than183 eco-enterprises.


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R hi h i l


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Reaching the entrepreneurialpoor

Some 10,700individuals havederived incomeas

microenterpriseowners,workers,suppliers orsub-contractors

More than104,000 poor,mostly womenreceivedsupport through

the


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Our Partners

Cabauatan JunkShopHardwork and

perseverance are keys toentrepreneurial success. Iam not ashamed of mywork. There is decentincome and I also help

others earn in a way thatis also good to theenvironment

Illumida Cabauatan, junk

shop owner


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3KJ

ChicharonI used to work

in a factorythat is farther

from here.Now, I amhappy tohave enough

earningswhile I can domyhousehold

chores.

Our Partners


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Our Partners

Greenminds

We nowproduce,

manufacture andsell our peanutswithout the helpof a middleman

-DatuMakadindingGreenminds

Manager


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We are nowable to sustainour daily needs. I

am able tograduallyimprove myhouse. Our entire

family now seesopportunity inevery trash thatis consideredworthless forothers.

Aling DoloresDilay , BUBI

Junkshop

Our PartnersBUBI

Junkshop


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Why Debt Swap?

Opportunity to finance neededdevelopment services

BUT not a solution to the debt

problem Debt swaps

must not legitimize dubious debts

not a substitute on internationalcommitments

on debt cancellations

KEY: Long-term debt management


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# 46 E., Samar Avenuecorner Eugenio Lopez St,South Triangle Quezon City1103

Tel No: [632] 928-8671[632] 9288422[632] 4114702-03

www.fssi.com.ph

fssi@fssi com ph

Contact Us:
http://www.fssi.com.ph/mailto:[email protected]:[email protected]://www.fssi.com.ph/

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FSSI Debt Swap Experience_09

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