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.