Manila - Germany has offered to write off 25 million euros in debts by the Philippines to fund health projects to fight HIV/AIDS, malaria and tuberculosis, an official said Tuesday.

Socio-Economic Planning Secretary Ralph Recto said the proposed debt swap was recently discussed with him by Josef Fullenbach, head of the South-East Asian unit of the Germany Ministry of Economic Cooperation and Development.

Recto said that under the proposal, the Philippines will no longer pay 25 million euros' worth of debts to Germany and instead use the amount to finance health programmes.

He said Philippine government agencies were already drafting project proposals, which would have to be approved by the German government before the deal is finalized. (dpa)