IMF to discuss US$1b aid to RP

IMF to discuss US$1b aid to RP

WASHINGTON (Reuter): The International Monetary Fund, using
emergency procedures introduced after Mexico's financial crisis,
will discuss support to the Philippines today, international
monetary sources said on Wednesday.

One source said an aid package of around $1 billion was
possible. This would include $600 million already offered to the
Philippines under an existing loan arrangement, but not yet
disbursed.

"Hopefully, this will be discussed on Friday using the so-
called Emergency Financing Mechanism," said the source, who asked
not to be identified. "The total amount could be about $1
billion."

The Emergency Financing Mechanism was introduced as a way for
the international financial community to respond to issues like
the Mexico crisis of early 1995.

The financial problems in the Philippines -- Manila
effectively devalued the peso last week after a massive
speculative attack -- will be the first time that the IMF has
looked at using these new regulations.

IMF Managing Director Michel Camdessus said last week that he
would recommend the IMF board make additional financial resources
available to the Philippines to help Manila cope with the
currency crisis.

The central bank had spent some $2 billion in a futile effort
to defend the currency, which came under pressure after Thailand
devalued the baht.