PHL allots more to fight poverty than $1B loan to IMF –Malacañang

The amount of money for poverty alleviation programs to benefit 3.8 million families is higher than the $1-billion the Bangko Sentral ng Pilipinas is lending to the International Monetary Fund, presidential spokesperson Edwin Lacierda said Tuesday   Lacierda cited the budget for the conditional cash transfer (CCT), which was raised from P39.5 billion this year to P45 billion next year–close to the $1-million loan or about P42 billion.   The $1 billion or P42 billion for IMF is a loan–charged with interest–and not a dole out, Lacierda noted. “We are not wasting the money. It’s a loan. IMF would pay us back the loan.”   Filipinos working in Europe would indirectly benefit from the loan, particularly those in the euro zone countries which borrowed money from IMF, Lacierda added.   “We have a substantial number of OCWs (overseas contract workers) and we have to protect… It’s in our interest to protect–to help those economies because we have a substantial number of Filipinos there,” the Palace official said.   Lacierda warned that OCWs in like Spain and Italy might lose their jobs and return to the Philippines if instability in single-currency Europe continues.   $77 billion foreign reserves   The $1-billion loan is a thin slice from Bangko Sentral’s $77-billion gross international reserves, generated through the bank’s sound fiscal policies and prudent management, Lacierda noted. Bangko Sentral would not risk an investment “that is not consistent with making sure that our money are fiscally preserved.”   “Look, we have 77 billion dollars in gross international reserves. How much are we giving to the IMF? How much are we loaning out to IMF? One billion over 77 billion dollars. Look at the ratio. It’s just one billion dollars and we’ve got the substantial number: 77 billion dollars,” said Lacierda.   He acknowledged Bangko Sentral for conserving and increasing the Philippine foreign reserves.   “We’re able to conserve through the year and that’s because of… stewardship of Bangko Sentral. I think, we should acknowledge the fact that they have done a good job of increasing our reserves as well,” he said.   He assured Senator Gregorio Honasan and Bayan Muna Rep. Teodoro Casiño that they can investigate the $1 billion loan.   The Palace also does not want to question the motives of lawmakers who oppose the loan, said Lacierda. “Hindi ko na sasagutin iyan. Medyo political na iyan, eh.   “But just to give you an example… I would ascribe good faith to those who would like to know why are we lending out $1-billion. I would not ascribe any bad faith to those questions. Certainly you would like to know and certainly Bangko Sentral will be willing to fill all the queries there,” he said.   Honasan and Casiño questioned the loan, saying that the funds could have been used to address hunger and poverty in the Philippines. —MJC/VS, GMA News