ASEAN CEBU SUMMIT LEADERS’ DEBT-EQUITY PROPOSAL PURSUED IN MEETING 

BETWEEN ASEAN FOREIGN MINISTERS AND WORLD BANK PRESIDENT

25 September 2007, New York – Building on the gains of the 12 ASEAN Summit which the Philippines hosted in Cebu last January, Foreign Affairs Secretary Alberto G. Romulo today called on World Bank President Robert Zoelick to seriously consider debt-equity to fund United Nations Millennium Development Goals Projects.

Secretary made this call at today’s meeting between the Foreign Ministers of ASEAN and Robert Zoelick, the new World Bank president.

“Earlier this year, at the 12th ASEAN Summit in Cebu, the ASEAN Leaders issued a call for the Paris Club of international lenders to receive and consider the proposal the Philippines made at the Asian Inter-Parliamentary Organization, for debt-equity arrangements to fund projects in the pursuit of the Millennium Development Goals (MDG) of the United Nations,” recalled during the meeting.

The Secretary pointed out during the meeting “with the Bank continuing to focus on the important task of helping the nations of the world attain economic stability and independence, I would like to highlight ASEAN’s call of for creative approaches to helping nations meet their Millennium Development Goal.”

Secretary Romulo also explained that under the proposal, given creditor approval, such borrowers may deploy up to half of their debt service payments to fund reforestation, pollution control, mass housing, information technology, health care, clean water or other UN MDG projects. 

During the meeting, Secretary Romulo also congratulated Mr. Robert Zoelick on his appointment as World Bank President, saying “Mr. Zoelick is an old and dear friend of ASEAN and one who truly understands the many challenges that face our region.”

Secretary Romulo also highlighted the partnership between the Philippines and the World Bank.

“The World Bank has been a very important partner of my country in attaining our Millennium Development Goals.  It has also played a critical role in our search for peace in Mindanao , particularly in assisting in economic and social recovery efforts in conflict-affected areas,” the Secretary said. 

“Among the Bank’s many projects and programs is its national program support for the Mindanao Rural Development Project and the ARMM Social Fund, both of which provide basic infrastructure and priority services for local communities,” he added. END.