Statement of BSP Gov. Amando Tetangco Jr. on $1B loan of PHL to IMF

The Philippines is supporting the global efforts to stabilize the world economy and maintain it on a growth path. This is the reason why the Philippines is extending a $1 billion loan to the IMF. We are a member of the global community of nations and it is also in our interest to ensure economic and financial stability across the globe. The Philippines is a member of the International Monetary Fund, which uses the contributions from its members to provide loans to countries going through financial difficulties to minimize its adverse impact on their people. For nearly forty years until 2006, the Philippines itself was a net borrower from the IMF.  We finally fully paid our loans to IMF in December 2006 as the implementation of continuing reforms have made our economy stronger. Today, our economic fundamentals are sound, our banks are able to meet domestic credit needs, and we are capable of lending $1 billion from our international reserves to the IMF. This is a loan to the IMF and we will get our money back with interest. In effect, by extending a loan to the IMF that will earn money for the Philippines we are also able to help other nations saddled with financial problems. Other nations have also committed to help IMF address the current financial crisis. — BSP news release