Palace: $1B IMF pledge is a case of paying it forward
Malacañang described on Thursday the government’s decision to extend a $1 billion pledge to the International Monetary Fund as “paying forward” the international organization as it has in the past assisted the Philippines during times of crisis.
“Now that we (the Philippines) have been considered a creditor nation, we feel it is our obligation to assist those nations who require funding from then IMF,” Presidential Spokesperson Edwin Lacierda said at a press briefing.
He said the country had been a recipient of IMF assistance for the past 40 years.
Lacierda expressed confidence that the IMF “will act judiciously on the funds” which is expected to help in stabilizing the crisis in Europe.
He said there is now a $456 billion standby fund for that purpose and the “Philippines contributed one billion dollars to that fund.”
Lacierda said the fund is kind of investment in global stability.
“It is our responsibility; it is part of our obligation,” said Lacierda.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said Wednesday that the $1 billion pledge extended by the Philippines will earn interest while helping other countries beset with financial problems.
The pledge to the IMF fund marks the third time that the country has extended a helping hand to other countries that were in troubled fiscal waters.
Since 2010, the Philippines has lent $251.5 million to distressed European countries Greece, Portugal and Ireland. The country also pitched in $4.55 billion to another buffer fund, the Chiang Mai Multilateral Initiative. — DVM, GMA News
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