MANILA, Philippines—The country’s top monetary official has not been losing any sleep over the world’s troubled economy or the impact it will have on the Philippines.

“Seriously, I sleep well knowing that the Philippine economy is in a better position to withstand any financial storms that come its way and that our policy framework at the BSP, though not recession proof, contains the appropriate balance between the requisite discipline toward the price stability mandate and flexibility to respond to challenges,” BSP Governor Amando Tetangco Jr. said in an interview with New York-based think tank Global Source.

A transcript of the interview, which was released by the BSP to the media, highlighted Tetangco’s assessment that the Philippines was in a much better position to weather an external payments problem these days.

The BSP chief also ruled out any possibility that the Philippines would have to enter another IMF program anytime soon.

“An IMF program is geared toward a sovereign that is at risk of defaulting on its debts due to a balance of payment crisis arising from a relapse in fiscal discipline or macroeconomic instability, alongside inadequate foreign exchange reserves,” Tetangco explained. “These downside risks are not evident at this time.”

The BSP chief noted that the Philippine economy had shown resilience and that the country’s external payments position remained manageable.

“I don’t believe a reversal of the fiscal gains we have made in recent years is likely,” Tetangco said. “The overriding macroeconomic environment and the underlying policy framework in place prior to this current crisis were solid and have helped to better arm the country to weather challenges.”

He added that policy formulation had not changed.

“We remain focused on the reform agenda, while being mindful of the evolving global environment.”

Concerning the IMF, Tetangco said it would maintain its role as a trusted financial advisor, and provider of much-needed technical assistance in the areas of fiscal responsibility, credible monetary policy, transparent monetary policymaking and market-friendly structural reforms that could help improve the flexibility of the economy.

He added that the IMF would also be a credible source of information on cross-country experiences with its multilateral surveillance.

Tetangco also explained why he was confident that the country was in a good position to ride out the storm.

“Macroeconomic fundamentals are sound and the economic growth potential remains good, domestic demand remains a major contributor to growth, external payments position as I said is stable, the banking system continues to remain sound as the structural reforms adopted by financial institutions since the Asian crisis—to clean up balance sheets, strengthen capitalization through Basel II, improve governance structures, enhance risk management systems, and adopt international accounting standards—have helped mitigate the impact of external shocks,” he said.

As a foreign exchange buffer, Tetangco said the level of the Philippines’ foreign exchange reserves, at over $36 billion, were more than four times the level the country had during the Asian crisis and should provide adequate in covering imports and maturing short-term foreign debt.

“Our balance of payments also continues to be in surplus supported by our growth sectors—overseas Filipinos’ remittances and BPO (business process outsourcing) services,” Tetangco said.