The Philippines maintained its net creditor position in the International Monetary Fund (IMF) after the central bank’s policy-making Monetary Board (MB) approved the country’s participation in the Financial Transactions Plan of the multilateral lender from August 2024 to January 2025.
“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 Bangko ng Pilipinas said in a statement Wednesday.
The Philippines became a net creditor in the IMF since August 2010 after registering high levels of foreign reserves and maintaining strong liquidity position.
The BSP said the MB’s approval of the country’s participation in the currency exchange agreement between the IMF and member countries “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,” it said.
As a net creditor, the Philippines’ allocated funds for the currency exchange pact is given remuneration.
The BSP said countries that are considered as net creditors are those that IMF assessed to have strong balance of payments and reserve position, have stable exchange rate and financial markets and have adequate foreign reserves.
“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 said.
