RP expects to exit IMF pact this year

RP expects to exit IMF pact this year

Ditas Lopez, Dow Jones, Manila

The Philippines expects to end its post-program monitoring
arrangement with the International Monetary Fund (IMF) later this
year, but Finance Secretary Jose Isidro Camacho said the exit
won't mean abrupt changes to the country's economic program.

Camacho told a teleconference arranged on Wednesday by JP
Morgan that the amount of the country's obligations against its
contributions to the IMF will be at a balance in September, which
would allow it to exit the Fund's post-program monitoring
arrangement.

The Philippines can't leave the IMF's post-loan arrangement
until its outstanding obligations fall below its quota, expressed
in special drawing rights, or SDRs, the unit of account of the
IMF.

"We see ourselves graduating from the IMF by the end of this
year or early next year," said Camacho. "However, I'd like to
assure that the policy direction won't change," he added.

The Philippines' IMF quota is equivalent to 879.9 million
SDRs, each roughly equal to one U.S. dollar. The quota dictates a
member country's voting power in the IMF. The quota is determined
by the relative size of the member's economy.

The Philippines was the IMF's first case in Asia and has
tapped some 20 program loans. Manila exited its last economic
program with the Fund in early 2001 without tapping the last
tranche of the available standby facility due to its failure to
comply with the fiscal conditions set out by the Fund.

The Philippines entered its post-program monitoring
arrangement with the IMF two years ago.