THE Philippines has retained its net creditor status with the International Monetary Fund (IMF), highlighting the country’s solid macroeconomic fundamentals, according to the Bangko Sentral ng Pilipinas (BSP) on Wednesday.
The Philippines’ participation in the IMF’s Financial Transactions Plan (FTP) will start this month until December 2025.
“The Philippines’ strong external position supports the country’s development goals which will be beneficial to the Filipino public,” the central bank said.
The Philippines, a regular IMF member since 1956, began participating in the institution’s FTP in August 2010 after the central bank became a creditor-member.
The FTP is a currency exchange arrangement between the IMF and eligible members that supports the IMF’s lending operations. Participants, such as the Philippines, receive interest payments from the IMF.
Selection for the FTP is based on a country’s balance of payments, reserve strength, market stability, and sufficient international reserves to meet obligations.
“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,” the BSP said.
“This puts the Philippines in a favorable position to remain as a Fund financial partner, which is an indication of the country’s commitment to contribute to the global financial safety nets and support the resolution of possible crises,” it added.
Be the first to comment