Euro nations borrow from Philippines’ IMF fund

By Randell Tiongson on April 6th, 2015

eu-flag1Here’s something very interesting to read: 9 EU Nations borrowed nearly over $400M from the Philippine’s IMF fund!

A recent post at the Manila Bulletin, it said that “the central bank reported that nine countries in Europe had withdrawn $439.50 million from its credit facilities with the International Monetary Fund (IMF).”

As a young elementary student in the 70’s and a high school and college student of the 80’s, I remember having to hear a lot about the International Monetary Fund and how the Philippines was so dependent on it for funding. The IMF was always mentioned as one of the main culprits why the Philippines was poor and how it was enabling the Marcos regime to enslave the nation. Wow, how things have changed from those times!

As a creditor member of the International Monetary Fund, drawing of funds from the fund is the Philippine’s participation to global financial stability. Can you imagine the Philippines contributing to provide ‘global financial stability’? There are 2 funds: IMF’s Financial Transaction Plan (FTP) and New Arrangements to Borrow (NAB). EU member nations Portugal, Ireland, and Greece were the biggest recipients from IMF’s FTP while other nations like Greece, Portugal, Tunisia, Cyprus and Ukraine was also accessed. The Philippines earns from said drawdowns by way of interest payments.

The country continues to register very strong Gross International Reserves (GIR’s) at $ 81.336 as of February 2015.

Another big change from before is our nation is not as indebted as it was before! In fact, the Philippines latest Debt to GDP ratio has improved to 37.3% as compared to 39.7% a year ago. The growth in the Philippine economy has made our debt management easier and we are outperforming many other nations. Our debt to GDP ratio is better than our ASEAN counterparts. The US’s debt to GDP ratio stands at 102.47%, Japan at 227.2%, France at 92.2%, Italy at 132.10%, Singapore at 105.5% and Thailand at 45.7%.

Admittedly, there are much more that needs to be done to ensure sustainable economic gains for the Philippines, one of which is the issue of inclusive growth. However, one cannot argue that the economic condition of the Philippines today is in a much better place than where it was decades ago. Let us continue to work hard at improving our nation, and having the faith to see real and sustainable progress in this generation… our gift for the next generation.

 

 

Share

73 thoughts on “Euro nations borrow from Philippines’ IMF fund”

  • so true .. nes miranda… laziness makes a person poorer… that’s why people should work in order to survive and should not depend on dole outs from the government… also, corrupt politicians are partly to be blame but sad to say .. also us voters who elected them.. that’s why in my opinion if ONLY it will be possible this coming election 2016 …just a suggestion to the government especially to the COMELEC …. why not allow only those who have TIN (tax identification number) or those are paying taxes and who contributed to the economy of the country through tax paying should cast their votes.. ..and choose the RIGHT Leader of this country.. coz in my observation, mostly (not all of them ) those people who belong to the unemployed sector are the easy targets of the corrupt politicians during election…., they will sell their votes for a mere P100-500.. then blame the government if they are hungry… and become poorer… so just a suggestion….

  • That’s a good idea from Joy…buying of votes should be gone…for a GREAT AND RICH PHILIPPINE NATION…

    ..

  • Philippine progress should not just be based in statistics and figures. Our beloved country’s progress should be seen and felt by the ordinary people below the poverty line. Figures and statistics might increase tremendously, but still the majority of the people are neglected and poor.

  • Tens of thousands Filipinos are still living in squatter areas in Manila. People are camping and sleeping in the middle of the streets and hi-ways. Opening car window is not advisable while travelling in the streets of Manila, your watch or i-Phone 7 will disappear in seconds. It will take time, maybe another 20 yrs, when the streets of Manila become safe and free from squatters. Poor people in Manila are those adventurers from provinces who sold their carabaos and lands in their provinces believing that Manila will give them fortune, but end up as squatters when they cannot find a decent job in the city. Rich Philippines is only in paper, in reality we are still poor nation. And dont compare our economy with Singapore, still very far.

  • Singapore is a city state with less than 5% of our population therefore it shouldnt be compared to the Philippines we should instead compare ourselves to Bangladesh or even Vietnam and feel proud that we are in a far better economic state !

  • Hope let’s not be carried by this propaganda. Come on tell the truth that divine wealth of the Philippines was used by UN to create World Bank and IMF. This is the reason why CPR was first Secretary General of UN. The purpose of the fund is to rehabilitate the damage ruin by World War Two but this find was piratwd by the evil bankers to enalave the planet.

  • If it weren’t for corrupt officials pocketing money intended for infrastructure projects, we wouldn’t be in debt in the first place, and we’d have much better roads, modes of transportation, education, healthcare and job opportunities for our people. As long as we have gov’t officials who put their self-interest and those of their cronies/families/friends above those of the nation’s, we are never going to have real improvement.
    I am no economist, but I beg to differ with the author’s opinion. Instead of lauding the gov’t for loaning out such a big amount to another country, I would like to know why this or at least part of this amount was not used instead to prepare for the expected problems that would arise with the El Niño? Is our country’s image much much more important than the welfare of it’s own citizens?

  • I totally agree about Taxpayers as the ONLY qualified voters since most of those who shell out big portions of hard earned income tend to be more conscientious and selective in choosing the rightful government servant. We know the real value of those money to be just placed in the hands of greedy and thick-faced politicians for their own good. The money that drag us into deeper debts (with IMF) are caused by the same corrupt politicians who are still in office and some are even running for our 2016 election, perfect example is Marcos. No matter how hard he tries to wash his hands off what took place during the dark Marcos regime, he (bongbong)was still part of that government, that family that brought us into the dark age. I know someone who has access to the information that the true culprits that ordered Ver for Ninoy’s assassination were Imelda & Bongbong, as they assumed they will be the ones next in line once Ferdinand needed to step down. I just hope we keep reminding ourselves and the younger generation of the mistakes of the past and about those who participated in it (especially those who has no remorse-Bongbong again). This way, we can improve how we choose our government leaders and thread the path towards real democracy and true public service.

  • I dont agree with Ms Joy. Even those who “does not pay taxes” actually does pay taxes through indirect means. Taxes paid directly from one’s compensation is not the only way to pay taxes. I suggest you read Francis Sababan’s Taxation Reviewer so that you will be enlightened. It’ easy to read, even for non lawyers and tax practitioners.

  • Joy, it seems that you are ignorant about taxation. Everything we bought, we paid tax because VAT is included in the price. So everybody is paying tax even if u are jobless. You better review your taxationand also those who agree with you, you must read your taxation books. You are posting this comment and others agreed to your comments without reading the book of Taxation Laws in the Philippines.

  • My sincere and personal opinion is everyone is accountable of what is happening in our country, it’s our own karma. The mass mind are too many to leverage the mind of prosperity, It must first change our perception being poor is not a gateway to heaven, which is always a sermon that they hear in their churches . Consciousness is very important as we design our own lives. And blaming is another negative attitude towards others . If only we allow the POWER WITHIN us to use the gift of God… which is LOVE , only then we can create a prosperous citizen of this beloved Country Philippines. It is true we have a lot of Gold buried all in our land, but greed , power control cannot be moderated, plus the less educated and mass mind, we produce a third world country. We all know for a fact , that Filipinos are intelligent, loving , forgiving and religious but not Spiritual… If everyone of us see the goodness in its heart, maybe then we can start changing our country and countryman and imbibe the unity, prosperity and exude LOVE to everyone.. I trust that one day .. we can really create a greater Philippines… Join Forces together for Peace on Earth.. Let there be peace on earth.. Let it begin with me.. And you and all of us.

  • What we can do is PRAY hard for two things :1) that those who are handling the PICOS MACHINE WILL HAVE THE CONSCIENCE NOT TO SELL THE END RESULT TO SOME CORRUPT POLITICIANS, and 2) FOR THE VOTING POPULACE NOT TO SELL THEIR VOTES AND TO VOTE FOR THE RIGHT CANDIDATE WHO WILL GOVERN THE NATION TOWARD PEACE AND PROSPERITY.

  • Industry, hard work or working is the secret here. You won’t have salary if you just depend on being on the streets rallying on every issue that you don’t like in the government. In fact if one does not work or pay taxes one should not be allowed to vote.
    Second Thessalonians 3:10-12 “… If anyone is not willing to work, let him not eat….”

  • This development is indeed something i did not expect to see during my lifetime. MOST SENIOR CITIZENS DO NOT REMEMBER THAT DURING MARTIAL LAW , THE IMF CAUGHT THE CENTRAL BANK MISREPRESENTING OUR DOLLAR RESERVES. IT FOUND OUT THAT THE GOVERNMENT WAS BANKRUPT.

    AND BONGBONG MARCOS HAS THE GALL TO SAY IT WAS A GOLDEN ERA.

  • Leave a Reply

    Your email address will not be published. Required fields are marked *

Copyright © 2015 by Randell Tiongson | SEO by SEO-Hacker. Designed, managed and optimized by Sean Si

Be a pal and share this would ya?
Euro nations borrow from Philippines’ IMF fund