Palace hails Philippines' creditor status

Thursday, February 23, 2012

MALACAÑANG said Wednesday that the Philippines' becoming a creditor country, from being a debtor, was recognition of the reforms being implemented by the administration of President Benigno Aquino III.

Presidential spokesperson Edwin Lacierda was referring on the country's entry on the International Monetary Board's (IMF) list of creditors.

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"That's a big jump and we're certainly proud of the recognition by the international financial community of the significant steps that we have taken in improving our financial system," Lacierda said in a news briefing.

"We have received several upgrades, credit upgrades in the past year and these are all indications of the confidence of the international community on the Aquino administration and on the Philippines," he added.

The Bangko Sentral ng Pilipinas (BSP) has said that as of December 2011, the Philippines has made available to the IMF through a currency exchange arrangement about US$251.5 million.

"More than half of these funds were disbursed by the IMF to European countries such as Ireland, Portugal and Greece in an effort to address the financial crisis impacting the European economic zone," the central bank has said.

In 2006, the BSP prepaid all outstanding debt from the IMF, which triggered the country's early exit from its Post-Program Monitoring Arrangement and concluded the country's use of Fund's resources after nearly four and a half decades. (SDR/Sunnex)