BSP extends bilateral borrowing deal with IMF

A bilateral borrowing arrangement with the International Monetary Fund (IMF) has been renewed by the Bangko Sentral ng Pilipinas (BSP), which said it was continuing a com safety net.

A $ 1- billion loan facility — first signed in 2013 — that can be tapped to support was extended last month with central bank Governor Nestor Espenilla Jr. signing a note purchase agreement.

the agreement expired in September 2017,” the central bank noted in a statement.

“As a member of the global community, the BSP shares the responsibility to contribute to the stability of the international monetary system given its sound macroeconomic fundamentals

and strong external position,” it added.

The Philippines became a net IMF creditor in 2011 after having fully paid its loans in December 2006.

Concerns about the adequacy of the IMF’s resources were raised crisis hit.

In response, the International Monetary and Financial Committee and the Group of 20 agreed in April 2009 that the IMF’s resources should be increased by $250 billion via bilateral borrowing arrangements.

These borrowing arrangements were subsequently incorporated into expanded multilateral arrangements called New Arrangements to Borrow or NAB.

As of October 12, 2017, 40 member countries had committed a total of about SDR319 billion or $450 billion.