PH remains an IMF creditor-member

Despite a weakened external sector, the Philippines has no intention of withdrawing its participation from the International Monetary Fund’s (IMF) financing arrangements as a creditormember.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo said the country’s IMF commitments to both the Financial Transactions Plan (FTP) and the New Arrangements to Borrow (NAB) are intact and they have renewed it.

Guinigundo said the FTP and NAB facilities are backups to ensure global and regional financial stability. “We continue to support the IMF on this,” he said. The cycle for each facility usually lasts 18 months.

The Philippines’ position in the FTP in the IMF’s Special Drawing Rights (SDR) amounts to SDR 317 million which is equivalent to $415.5 million. The SDR is the currency of the IMF’s reserve assets.

For the NAB, the participation amounts to SDR 340 million or $460 million.

The absolute limit amount that the BSP on behalf of the government can extend under the FTP is SDR 1 billion or $1.35 billion.

It was in 2010 when the BSP first made the bid to change its status in the IMF from debtor-member to creditor country or specifically as a net creditor based on the balance of payments (BOP) and current account balance concepts which were consistently in