As part of the global community, it is the responsibility of the Philippines to assist other nations in financial distress, that is why it has contributed $ 1 billion to the International Monetary Fund’s coffers.
“We have been a recipient of IMF assistance for the past 40 years. Now that we have been considered a creditor nation, we feel it’s our obligation to assist those nations who require funding from the IMF,” Presidential Spokesman Edwin Lacierda said in a press briefing in Malacañang on Thursday.
“This will also help in stabilizing the crisis that is going on in Europe,” he added.
Reporters asked Lacierda how the government can guarantee the people that the US$ 1 billion loan to the IMF wouldn’t be mismanaged.
“As to whether it is risky or not, we believe that the IMF will act judiciously on the funds. There is now a standby fund for around US$ 456 billion, and we have contributed US$ 1 billion to that fund,” Lacierda said.
The Bangko Sentral ng Pilipinas said in a statement on Wednesday that the Philippines is extending a US$ 1 billion loan to the IMF to support global efforts to stabilize the world economy and maintain it on a growth path.
The Philippines, as a member of the global community of nations, has an obligation to ensure economic and financial stability across the globe, it said. IMF loans assist countries going through financial difficulties to minimize its adverse impact on their people.
For nearly 40 years until 2006, the Philippines was a net borrower from the IMF following the implementation of continuing reforms that made the country’s economy stronger, according to the BSP.