PH Maintains Net Creditor Status In IMF Financing Transactions Plan

The Philippines has successfully maintained its net creditor position in the International Monetary Fund’s (IMF) Financial Transactions Plan (FTP), as reported by the Bangko Sentral ng Pilipinas (BSP).

The FTP is described as a currency exchange arrangement between the IMF and eligible member countries.

The Monetary Board has approved the Philippines’ continued participation in the FTP of the IMF for the period from August 2024 to January 2025.

The BSP emphasized that this continuation "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 added.

The FTP is described as a currency exchange arrangement between the IMF and eligible member countries, facilitating the IMF’s lending operations with other members. Through this arrangement, the IMF pays interest, known as remuneration, to FTP participants like the Philippines.

The BSP noted that the Philippines first participated in the FTP in August 2010, following a Special Authority granted by the President 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, the stability of exchange and financial markets, as well as the adequacy of the country’s international reserve assets to ensure that the participating country can fulfill its obligations during the specified FTP period,” the BSP elaborated.

The Philippines has been assessed as eligible for continued participation in the FTP due to its strong external position and ample gross international reserves, which provide a buffer against external shocks, the BSP added.

“This puts the Philippines in a favorable position to remain as a Fund financial partner, demonstrating the country’s commitment to contributing to global financial safety nets and supporting the resolution of potential crises,” the BSP emphasized.