RP to seek new IMF loan

RP to seek new IMF loan

MANILA (AP): Philippine economic officials have agreed that
the country should enter into another program with the
International Monetary Fund (IMF) when an existing two-year
precautionary arrangement expires next March, an official said
Tuesday.

Finance Secretary Edgardo Espiritu said he expects President
Joseph Estrada will soon endorse the country's entry into another
IMF agreement. Negotiations with the IMF over a new program will
most likely begin in January, Espiritu said.

The Philippines is able to draw funds quarterly from its
existing precautionary arrangement with the IMF, which allows up
to US$1.4 billion in standby credit to protect the peso in the
event of a massive speculative attack.

The Philippines has so far drawn $733 million from the
arrangement and is expected to draw a further $290 million
following a favorable IMF review of the country's economic
progress.

The Philippines has been under IMF supervision for more than
three decades and has made more than 20 borrowing arrangements.