PHILIPPINES APPROVES 80 MLN DLR DEBT CONVERSION
The Central Bank has approved the
conversion of 80.7 mln dlrs worth of Philippine debt into
equity in local projects under a debt-to-equity swap program
started last August, Finance Minister Jaime Ongpin said.
    He told reporters the amount represented 57 transactions
involving diversified investments. He said 90 applications to
convert 316.7 mln dlrs of debt have so far been received by the
Central Bank.
    Ongpin also said the International Finance Corp (IFC), a
World Bank affiliate, would invest up to 12.5 mln dlrs in the
First Philippine Capital Fund.
    The fund, to be launched jointly by New York investment
house Shearson Lehman Brothers and IFC, was proposed by Ongpin
during a trip to the United States in September.
    There was still no word on when the fund, designed to
encourage private sector investment in the Philippines, would
be launched.
    A telex from IFC to Ongpin said the IFC investment will
consist of exchanging up to 12.5 mln dlrs face value of
Philippine debt it holds.
    The capital fund and the Central Bank's debt conversion
plan are both aimed at reducing the country's debt burden by
enabling interested investors to buy government notes at a
discount, repatriate these and convert them at full value in
pesos.
    The proceeds will then be used to investing in local
projects.
    The country's foreign debt now stands at 27.8 billion dlrs.
 REUTER
