Editorials

Link: http://www.diversityhuman.com/index.php?post/2012/04/29/Philippine-Bank-Closure-Facts-You-need-to-be-Aware-of

Philippines lends $1 billion to International Monetary Fund

The Republic of the Philippines is lending the International Monetary Fund (IMF) $1 billion declared by Bangko Sentral ng Pilipinas. Its primary goal-to help stabilize the global economy amid the euro zone’s debt crisis.

"The Philippines is supporting the global efforts to stabilize the world economy and maintain it on a growth path. This is the reason why the Philippines is extending a $1 billion loan to the IMF. We are a member of the global community of nations and it is also in our interest to ensure economic and financial stability across the globe,” BSP Governor Amando M. Tetangco Jr. said in a statement.

Tetangco said the loan to the IMF is the Philippines’ way of giving back to the world’s so-called lender of last resort after it helped the country address its financial difficulties in the past. (The way I assess this scenario--this is a penalty of being too dependent from other countries. Philippines' yearly import rate is 90%. That means, we don't buy our very own Philippine made products or local manufacturing sectors didn't receive ample support from the government leaving them to continue importing foreign products. Imports cost dollars and that could be the main reason why Philippines was too dependent from IMF for over 5 decades.)

“Today, our economic fundamentals are sound, our banks are able to meet domestic credit needs, and we are capable of lending $1 billion from our international reserves to the IMF,” Tetangco said. ( I don't think so Mr. Tetangco. We just recently closed Export Bank among others right? So what are you talking about?)

“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. Other nations have also committed to help IMF address the current financial crisis,” he added. (Well, just make sure that you don't forget our current state. We need to have more funds since we still owe billions of dollars to World Bank and to other countries.)

The Philippines had been a net borrower from the IMF for almost 40 years until the country finally settled its loans in 2006.

Source: interaksyon news