The Philippines contributed more than $125 million as of end-2011 to the pool of money disbursed by the International Monetary Fund to help address the financial crisis confronting economies in Europe.
This was according to the Bangko Sentral ng Pilipinas, which reported Tuesday that the Philippines, which enjoys growing foreign exchange reserves, has made available about $251.5 million to the IMF to finance the assistance program—the Financial Transactions Plan (FTP)—for crisis-stricken countries.
Of the amount, more than half was actually disbursed by the IMF to European countries battling the financial crisis, including Ireland, Portugal and Greece.
IMF-member countries, which pay quota contributions to the institution, are either net borrowers or lenders depending on their foreign exchange liquidity and the stability of their financial sectors.
“By virtue of their participation in the FTP, emerging market economies like the Philippines have joined international cooperative efforts to mitigate the spillover effects of Europe’s sovereign debt crisis by enhancing financial safety nets [through contributions to funds for lending],” BSP Governor Amando Tetangco Jr. said in a statement.
The Philippines used to be a net borrower as far as its membership with the IMF was concerned. But in 2006, the country prepaid all its outstanding debts with the IMF given its much-improved external liquidity position.
In 2010, the Philippines became a lending IMF member by participating in the FTP as a creditor country.
“The Philippines’ long-standing relationship with the IMF has evolved from being a prolonged user of the IMF’s resources to a stronger partnership marked by the country’s contribution to collective efforts in preserving the stability of the international monetary system,” Tetangco said.—Michelle V. Remo