RP poised to quit IMF supervision

RP poised to quit IMF supervision

MANILA (AFP): The Philippines is ready to exit from more than three decades of economic supervision by the International Monetary Fund (IMF), the IMF and the government said here yesterday.

John Hicklin, head of an IMF review mission, told a new conference: "We continue to be impressed by the determination of the authorities to pursue sound macroeconomic policies ... and structural reforms."

He and government officials said all they were waiting for was the passage of a tax reform package before June, when an existing three-year IMF economic program is due to expire.

He said the IMF had made no contingency preparations in case the tax reforms were not passed and remarked "we've been working on the assumption it will" be passed.

Finance Secretary Roberto de Ocampo said Thursday that in a meeting with congress leaders this week, "there seemed to be a consensus ... to move the (tax reforms) by May 1" as President Fidel Ramos had earlier requested.

The remaining tax reforms include the simplification of the individual income tax and corporate tax as well as the elimination of certain tax perks to corporations.

During the review, the IMF had completed a draft economic program for 1997, setting gross national product (GNP) growth at seven to eight percent with average inflation at six to seven percent.

Gabriel Singson, governor of the Central Bank of the Philippines, said gross domestic product (GDP) growth would be more than six percent.

The national government is also scheduled to post a budget surplus of 13 billion pesos (500 million dollars) this year with a smaller total public sector surplus as well.

When the Philippines exits from IMF monitoring, it will no longer have to forge regular three-year economic programs with the fund in order to obtain access to foreign credit markets.

Hicklin said the fund would still send regular annual missions to the country to review its macroeconomic performance.