The Philippines had been a net borrower from the IMF for almost 40 years until the country finally settled its loans in 2006.
“Today, our economic fundamentals are sound, our banks are able to meet domestic credit needs, and we are capable of lending $1 billion from our international reserves to the IMF,” Tetangco said.
“This is a loan to the IMF and we will get our money back with interest. In effect, by extending a loan to the IMF that will earn money for the Philippines we are also able to help other nations saddled with financial problems. Other nations have also committed to help IMF address the current financial crisis,” he added.
The $1 billion the Philippines lent the IMF forms part of the $456 billion crisis fund that the lender secured from its member-nations to help insulate the global economy from any spillover from the euro zone’s financial difficulties.
Original article here: http://www.interaksyon.com/business/35337/in-reversal-of-roles-philippines-lends-imf-1-billion-to-boost-crisis-fund