Phl Now A Creditor Nation
MANILA, Philippines - From being a user of the resources of the International Monetary Fund for decades, the Philippines has attained creditor status, with half of its $251.5-million contribution to the IMF as of December tapped to help European countries such as Ireland, Portugal and Greece ease the impact of the financial crisis in the euro zone, the Bangko Sentral ng Pilipinas (BSP) said yesterday.
The BSP said the country’s improved status has become evident with its being a participant in the Financial Transactions Plan (FTP) of the IMF since 2010.
The FTP is the mechanism by which the IMF finances its lending and repayment operations through transfer of foreign exchange from members with strong external position to borrowing members.
“A member is said to have a creditor position in the Fund when the latter has used the holdings of the member’s currency to provide financial assistance to other members,” the BSP clarified.
Source: http://www.philstar.com/Article.aspx?articleId=779890&publicationSubCategoryId=63
