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$350M in PH loans to IMF went to euro zone

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With foreign-exchange reserves exceeding prescribed levels of adequacy, the Philippines extended nearly $350 million in loans to the International Monetary Fund for relending to crisis-stricken countries in the euro zone, including Portugal, Ireland and Greece, according to the Bangko Sentral ng Pilipinas.

The BSP said that due to globalization, the crisis in the West has a potential to spill over to Asia and the Philippines. As such, it said that contributing to global efforts to help stem the problem in the euro zone was a prudent act.

“The BSP signaled its support to the IMF’s efforts in raising resources to strengthen the European firewalls, help stem potential contagion and secure global and economic stability,” the central bank said in a report.

Being a member of the IMF, the Philippines contributes to the organization’s pool of financial resources, which are tapped to help countries dealing with foreign exchange-liquidity problems.

Countries in need of funds can borrow from the IMF, particularly through its Financial Transactions Plan (FTP) and the New Arrangements to Borrow (NAB) facilities.

According to the BSP, out of the total loans extended by the IMF under the FTP, $286.4 million were contributions from the Philippines. Out of the total loans extended by the organization under the NAB, $62 million were also from the Philippines.

“More than half of the funds [from the Philippines] were disbursed to European countries such as Portugal, Ireland and Greece in an effort to address the financial crisis impacting the European economic zone,” the BSP said.

On top of the funds from the Philippines that the IMF already disbursed in 2012, the country has likewise pledged an additional $1 billion to the international lender to further beef up its resources to help resolve the euro-zone crisis. The IMF will draw on the amount should the need arises.

Contributions from the Philippines form part of the hundreds of billions of dollars being earmarked by the IMF and other international creditors to the euro zone, which struggles with a crisis in the financial sector and unmanageable government debts.

The crisis in the Western region is blamed for dragging overall global demand, which has dampened export revenues of emerging economies, including the Philippines.

Meantime, the Philippines has enjoyed growing foreign exchange reserves, which now stand at $84 billion. The buildup of the reserves was credited largely to remittances from overseas Filipinos, foreign investments in the business process outsourcing (BPO) sector and foreign portfolio investments.


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Tags: Business , Foreign Exchange , News , the International Monetary Fund

  • joboni96

    kung hindi ba namang hunghang at kolonisadong utak
    mga doctorated financial leaders natin

    nabayaran na natin sana mga utang natin
    $84B (foreign reserves) – $61.7B (foreign debt) = $22 billion left foreign reserves
    still enough foreign reserves

    this will result to P367 billion more for government projects
    coming from the automatic 20% debt payments in the national budget

    yan ding P367 billion na iyan kaya takot at nakikinabang
    ang mga doctorated financial leaders sa mga foreign banks and capitalists

    proper time also because our western lenders
    need the money

    mahina rin ang mga senador at congressmen natin
    kung naging project yang P367 billion na iyan every year

    at 30% commission rate
    that’s an additional more than P110 billion commission per year

    more chicks, more lands, more mansions, more businesses etc

    how about it mga honorable sirs
    lets retire our foreign debt

  • CyberPinoy

    the Philippines extended nearly $350 million in loans to the International Monetary Fund.
    .. On top of the funds from the Philippines that the IMF already disbursed
    in 2012, the country has likewise pledged an additional $1 billion..

    - Anak ng pating $350 million laking pera nun para ipautang, sana kahit kalahati lang idagdag sa AFP mondernization at least napakinabangan pa natin yung mga aditional Militarey equipments lalo na pag may disaster. Why cant Department of Budget and the Govt work together to fund important provisions first like the AFP modernization before lending such large amount of money. Our govt is all talk that we need to accelarate AFP modernization but actually only giving a meager amount to address the issue. when conflict comes we are just like sitting ducks. Stupid govt!

    • http://webusertoday.blogspot.com/ WebUser

      The money is the country’s foreign exchange reserves. It is not for domestic expenditures.

  • KulangotzMo

    Brown out sa Mindanao di ma solusyunan, nagpapautang pa. Gleng talaga

    • http://www.facebook.com/popoy.tala Poypoy Tala

      that’s the result of capitalism and EPERA law… blame it to Aquino and Ramos

  • Teresa Santos

    WHAT HAPPENS TO THIS MONEY IF EUROZONE DEFAULTS?

    • dodong1

      di goodbye, sayonara, paalam….lugi!!

    • http://www.facebook.com/popoy.tala Poypoy Tala

      parang tau maraming utang sa labas na condoned specially from US of A

  • Ozamis7

    Bakit ba tayo nakikialam sa utang na may utang, eh yong mga pinautang natin sa inuutang natin ay di hamak na maganda pa ang buhay nila kay sa atin. dito sa pinas maraming mga mahihirap na dapat ay bigyan ng pautang para mag karoon ng pang hanapbuhay. ano na ba itong nangyayari sa BSP natin… nag pasiklab…. alam ng buong mundo na ang Pilipinas ay mahirap pa rin. hindi ko talaga maintindihan kung ano ang nangyayari sa BSP, tayo umuutang para lang pala ipautang sa mga taga Europe… OMG… masarap ang buhay dito sa Europe kay sa Pinas … WALANG ESKUATER DITO…

    • http://www.facebook.com/popoy.tala Poypoy Tala

      we stand for international community call…its normal… mas ok magpautang kaysa mangungutang… you can earn also in mangungutang para ipautang… this money is BSP reserve… its not part of the trillion budgets of our national gov. a year

      • Ozamis7

        Sa akin lang naman sana unahin natin muna ang mga pangangailangan ng mga kababayan natin na naghihirap bago tayo tutulong sa ibang bansa na sa totoo lang mas maganda pa ang kalagayan nila kumpara sa Pilipinas. God bless the Philippines.. kaylan pa kaya tayo uunlad, Hanggat may mga eskuater sa atin, mahirap pa rin tayo!!!

      • http://www.facebook.com/popoy.tala Poypoy Tala

        wala ng pag-asa yan… as long as our leaders believe on total capitalism is ideal for third world countries….loso… wag ka ng umasa…



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