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.