slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Debt Relief Can Help Fight HIV/AIDS, Tuberculosis and Malaria PowerPoint Presentation
Download Presentation
Debt Relief Can Help Fight HIV/AIDS, Tuberculosis and Malaria

Loading in 2 Seconds...

play fullscreen
1 / 21

Debt Relief Can Help Fight HIV/AIDS, Tuberculosis and Malaria - PowerPoint PPT Presentation


  • 87 Views
  • Uploaded on

Debt Relief Can Help Fight HIV/AIDS, Tuberculosis and Malaria. Presenter Robert R. Filipp Head of Innovative Financing The Global Fund, Geneva Tel.: +41 (22) 791 robert.filipp@theglobalfund.org.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Debt Relief Can Help Fight HIV/AIDS, Tuberculosis and Malaria' - drew


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1
Brookings Institution, 28.02. 2007

Debt Relief Can Help Fight HIV/AIDS,

Tuberculosis and Malaria

slide2
Brookings Institution, 28.02. 2007

Presenter

Robert R. Filipp

Head of Innovative Financing

The Global Fund, Geneva

Tel.: +41 (22) 791

robert.filipp@theglobalfund.org

Special thanks to Christoph Benn, David Bryden, Jürgen Kaiser, Susanne Luithlen, Liza Munira, Lorrayne Ward, Rosemarie Philips, Xay Xayakhom, Paul Zeitz.

2/18

slide3
Brookings Institution, 28.02. 2007

Content

  • New Approaches to Funding Global Health
  • The Case for Debt Conversion
  • The “Debt2Health” Model
  • “Debt2Health” as a Win-Win Scenario
  • Status of Implementation

3/18

slide4
Brookings Institution, 28.02. 2007

Funding Global Health through the Global Fund

  • USD 6.8 billion raised between 2002-2006, disbursed USD 1.3 billion in 2006
  • “Innovative Financing” (private & public sectors) 3.5% of total disbursed in 2006 but growing rapidly (7% in 2007, 10% in 2008)

(Product) REDTM

4/18

slide5
Brookings Institution, 28.02. 2007

The Case for Debt Conversion*

  • developing country debt is USD 2.6 trillion
  • LIC debt has declined slightly as a result of HIPC and MDRI initiatives but overall debt has increased due to rise in LMICs
  • some small multilateral financial institutions still hold debt in HIPCs

Medium & Long-term Debt of Developing Countries

* Based on data from the Global Development Finance Report (GDF), 2005

slide6
Brookings Institution, 28.02. 2007

The Case for Debt Conversion*

Public & Publicly Guaranteed Medium & Long-term Debt of Developing Countries

* Based on data from the Global Development Finance Report (GDF), 2005

slide7
Brookings Institution, 28.02. 2007

The Case for Debt Conversion*

  • 24 countries are indebted above the HIPC threshold but are not included in HIPCs or MDRI
  • 15 countries spend more than 20% of export earnings on debt servicing
  • 14 countries show high disease burden with regards to HIV/AIDS, Tuberculosis or Malaria
  • HIPC countries can benefit from D2H through inclusion of debts from small multilateral financial institutions
  • Policy benefits from global alliance between debt campaigners and health advocates.

http://www.theglobalfund.org/en/files/GFDC_REPORT.pdf

* Based on Global Development Finance Report data from 2002-2004

slide8
Brookings Institution, 28.02. 2007

is a Global Fund-facilitated debt swap agreement. In it, a group of creditors agrees to cancel a portion of ODA or ECA claims on the condition that the beneficiary invests an agreed upon counterpart amount in a Global Fund approved programme to fight HIV/AIDS, tuberculosis and malaria.

9/18

slide9
Brookings Institution, 28.02. 2007

The Case for Debt Conversion: Indonesia Example

  • 40.0% of budget spent on debt servicing
  • 26.0% of export earnings spent on debt servicing
  • 8.7% of GDP used for debt service
  • 1.2% went to health and education
  • Source: UNDP Human Development Report, 2005 and Global Development Finance Report GDF, 2006.

7/18

slide10
Brookings Institution, 28.02. 2007

The Case for Debt Conversion:Indonesia Example

50 million Euro debt cancellation through „Debt2Health“ would increase the current Global Fund portfolio (Rounds 1-6) by 25%, affording:

  • bed nets to fight malaria
  • treatments for malaria
  • HIV tests
  • patients on ARV treatment and
  • patients on TB treatment

200,000

50,000

120,000

3,600

2,550

8/18

slide11
Brookings Institution, 28.02. 2007

Expected Resources Flow through Global Fund (Cumulative 2007-2011)

Target

Committed

Cost

6/18

slide12
Brookings Institution, 28.02. 2007

The Model

(1) cancels agreed amount of debt

CREDITOR

BENEFICIARY

COUNTRY

Counter-part

Fund

(2) pays at agreed discount

Entry Points for health programme

in Global Fund cycle:

“Phase 2” or Round or RCC

PrincipalRecipient

GLOBAL FUND

PROGRAMME

Legend:

RCC - Rolling Continuation Chanel

Board -Approval by Global Fund Board

13/18

slide13
Brookings Institution, 28.02. 2007

Uses Existing Structures

  • submission through “Phase 2 Review”, regular Round or RCC
  • technical review (TRP)
  • approval (Board)
  • disbursement on
  • “performance-based funding”
  • monitoring & evaluation

14/18

slide14
Brookings Institution, 28.02. 2007

Exceptions

  • source and location of funds
  • treatment of funds in case of non-performance

14/18

slide15
Brookings Institution, 28.02. 2007

A Win-Win Scenario for Creditors

  • resolution of old loans
  • claimable towards ODA according to OECD-DAC rules
  • claimabletowards Global Fund contribution
  • high chance of programmatic success using proven “performance-based funding”

10/18

slide16
Brookings Institution, 28.02. 2007

A Win-Win Scenario for Beneficiaries

  • partial relief of debt burden
  • increase in health spending
  • high level of country ownership as counterpart funds come from domestic budget
  • performance through existing and proven grant management system based on “performance- based funding”
  • net contributor to the Global Fund
slide17
Brookings Institution, 28.02. 2007

A Win-Win Scenario for the Global Fund

  • scaled-up health targets reached faster
  • use of Global Fund “performance-based” systems for domestic funds
  • net contributors from the Global South

12/18

slide18
Brookings Institution, 28.02. 2007

Status of Implementation

  • countries selected: Indonesia, Pakistan, Peru, Kenya
  • criteria: non-HIPC, non-MDRI, disease burden, solvency, Global Fund grant performance
  • negotiations on first pilot about to commence between Germany and Indonesia in March 07
  • possible expansion to additional countries through participation by small multilateral financial institutions

15/18

slide19
Brookings Institution, 28.02. 2007

Status of Implementation: Steps and Timeline for First Pilot

Feb 07

Mar 07

May 07

Sep 07

Oct 07

Term Sheet

Draft (KfW)

Negations

International Meeting on Debt for Health

Additional Creditors

International Launch of D2H in Berlin

Signature of First D2H Agreement

Implementation and Debt Cancellation

16/18

slide20
Brookings Institution, 28.02. 2007

is supported by:

(1)

17/18

(1) Subject to formal approval by VENRO Board