The Bangko Sentral ng Pilipinas (BSP) said the Philippines was able to maintain its net creditor position in the International Monetary Fund’s (IMF) Financial Transactions Plan (FTP).
In a statement on Wednesday, the BSP said the Monetary Board approved the continued participation of the Philippines in the FTP of the IMF for the period August 2024 to January 2025.
“This means that the country has maintained its net creditor position in the IMF which underscores the country’s sound macroeconomic fundamentals. The Philippines’ strong external position supports the country’s development goals which will be 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 participants like the Philippines.
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.
“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 country’s international reserve assets to ensure that the participating country will fulfill its obligations during the specified FTP period,” the BSP said.
The BSP said the Philippines has been assessed to be eligible for continued participation in the FTP due to the country’s strong external position and ample gross international reserves to withstand external shocks.
“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,” the BSP said. (PNA)
