PH-France financial pact aims to alleviate poverty, boost inclusive growth

By Francis Allan L. Angelo

Finance Secretary Ralph G. Recto announced the signing of a Government-to-Government (G2G) agreement between the Philippines and France, focusing on financial and development cooperation to reduce poverty and promote inclusive growth.

“With the broad range of development areas covered, this agreement will certainly serve as a key poverty-fighting force that will help us establish a solid foundation for a thriving, inclusive future for Filipinos,” Recto said in a press statement.

The Agreement on Financial and Development Cooperation (AFDC) enables the Philippine government to access concessional official development assistance (ODA) and blended financing from France. This funding will support the Marcos Jr. administration’s priority projects.

Secretary Recto and French Ambassador Marie Fontanel signed the agreement on June 7, 2024, accompanied by a ceremonial exchange of diplomatic notes between DFA Assistant Secretary Maria Elena P. Algabre and the French Ambassador.

“This agreement is more than just a financial partnership; it is an assurance of uninterrupted delivery of programs and projects that will benefit all Filipinos,” Recto emphasized. He expressed gratitude to the French government, highlighting the milestone’s significance in achieving economic security and prosperity for the Philippines.

Key sectors targeted by the agreement include agriculture, agro-industry, mining, water sanitation, infrastructure, transportation, and renewable energy. “We are very enthusiastic about the numerous pioneering and exciting projects that will be developed through this agreement, especially those that have never been done before in the Philippines,” Recto added.

Ambassador Fontanel affirmed France’s commitment to enhancing its partnership with the Philippines, particularly in defense, security, energy, food, maritime, and climate change. She also pledged support for the Build Better More program and commended the efforts of the DOF and DFA in finalizing the agreement.

Notable attendees included French Embassy Deputy Head of Mission Remy Tirouttouvarayane, Economic Counsellor Alain Fontanel, and DOF Undersecretary Joven Balbosa.