Palace defends $1-B contribution to IMF

Posted at 06/22/12 3:06 AM

MANILA, Philippines - Malacañang defended yesterday the government’s $1-billion contribution to the International Monetary Fund (IMF), saying it’s the country’s turn as a member of the global community to assist other nations in financial distress.

“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.

“This will also help in stabilizing the crisis that is going on in Europe,” he added.

“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 of around $456 billion, and we have contributed $1 billion to that fund,” Lacierda said.

The Bangko Sentral ng Pilipinas said in a statement on Wednesday that the Philippines was extending $1 billion to the IMF to support global efforts to stabilize the world economy and put 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, the BSP said.

IMF loans are intended to assist countries experiencing financial difficulties.

“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,” the BSP said.