The Philippines has kept its status as a net creditor country member of the International Monetary Fund that it first gained during then President Joseph Estrada leadership.
Bangko Sentral ng Pilipinas governor Eli Remolona announced this development on Wednesday, sayingthe Monetary Board approved the country’s continued participation in the Financial Transactions Plan (FTP) of the IMF for the period August 2024 to January 2025.
Remolona said keeping the net creditor position in the IMF highlights the country’s sound macroeconomic fundamentals, its strong external position supporting the country’s development goals beneficial to the Filipino public.
The BSP said the FTP is a currency exchange arrangement between the IMF and eligible members to facilitate the IMF’s lending operations with other member countries. The IMF pays interest, called remuneration, to the FTP participating countries.
In selecting members for inclusion in the FTP, the IMF considers the strength of the member’s balance of payments and reserve position, stability of the exchange and financial markets, as well as adequacy of a country’s international reserve assets to ensure that the participating country will fulfill its obligations during the specified FTP period.
The Philippines first participated in the FTP in August 2010 in line with the Special Authority granted by the President of the Republic of the Philippines to the BSP.
Given that the country’s external position remains strong, with ample gross international reserves to withstand external shocks, the country has been assessed to be eligible for continued participation in the FTP.
