Creditor Status in IMF Signifies Strong Confidence for Philippine Financial System, says Palace

180-nation International Monetary Fund (IMF)

Malacanang welcomed the recent recognition of the Philippines after it became one of the creditor nations in the 180-nation International Monetary Fund (IMF). “We welcome that recognition from a borrower nation to a creditor nation. That’s a big jump. We’re certainly proud of the recognition by the international financial community of the significant steps that we have taken in improving our financial system. And that’s an indication of the recognition of the international financial community,” Presidential Spokesman Edwin Lacierda said during the regular press briefing in
Malacañang on Wednesday.

“We have received several upgrades in the past year and these are all indication of the international community’s confidence on the Aquino administration and on the Philippines,” he added.

The Philippines is looking forward to become an active participant in assisting other nations in distress under the IMF. The country has made available 163.8 million in special drawing rights or SDRs under a currency exchange mechanism known among members as the Financial Transactions Plan or FTP.

The Bangko Sentral ng Pilipinas (BSP) said that with the continued membership of the Philippines with the FTP, it could become part of a new borrowing scheme called the new arrangements to borrow or NAB facility of the IMF. The facility seeks to help distressed countries or institutions.

The Philippines had been a Financial Transactions Plan participant since 2010, funding the loans and repayment operations of the IMF by using the foreign exchange resources of its financially strong members to help weak nations.

The Philippines holds a creditor or reserve position in the IMF through its participation in the FTP, making it a net lender rather than net borrower.

According to the BSP the participation of the Philippines to the FTP contributed to international efforts to mitigate the spillover effects of Europe’s sovereign debt crisis by enhancing global financial safety nets.

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