BSP: No need to tap IMF's loan facility

Published May 19, 2020 11:44 AM By JON VIKTOR D. CABUENAS,GMA News

The Bangko Sentral ng Pilipinas (BSP) on Tuesday said there is no "apparent and immediate" need to avail of the borrowing facility of the International Monetary Fund (IMF), as the Philippines is currently "in a position of strength."

According to BSP Governor Benjamin Diokno, the Philippines does not need to tap the IMF's Short-term Liquidity Line (SLL) which provides assistance to members in terms of loans, to boost the funding requirements for their response to the coronavirus disease.

"BSP sees no apparent and immediate need to avail of IMF’s Short-term Liquidity Line (SLL)," he told reporters via mobile message.

"As I said before, structural reforms and sound economic management have helped the Philippines enter the COVID-19 crisis from a position of strength," added Diokno.

Diokno cited the balance of payments (BOP) position of the Philippines, which amounted to $7.84 billion as of end-December, the highest in seven years. Latest data from the central bank showed that the BOP position registered an $839-million surplus in February.

The BOP consists of Philippine transactions with the rest of the world during a specific period. A surplus means more funds entered the country, while a deficit means more funds went out.

Diokno also noted the "stable" performance of the peso which has "outperformed" regional peers as of May 15, the gross international reserves (GIR) which was recorded at $89 billion as of end-March, and the "manageable" debt-to-GDP ratio which was estimated at 41.5% in 2019.

For his part, Acting Socioeconomic Planning Secretary Karl Kendrick Chua said increased borrowings could bring the debt-to-GDP ratio up to 46% to 47%.—AOL, GMA News

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