The country maintained a strong net creditor position with the International Monetary Fund (IMF) which will support the latter’s lending operations and affirm the Philippines’ substantial international reserves, a statement from the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

The BSP said the Philippines’ creditor standing prompted its Monetary Board to continue participating in the IMF’s Financial Transactions Plan (FTP) in this month until January 2025.

The FTP involves currency exchanges between the IMF and its members to facilitate the IMF’s lending operations with other member countries. In return, the IMF pays interest, called remuneration, to the FTP participants.

“Given that the country’s external position remains strong, with ample gross international reserves to withstand external shocks, the country has been assessed to be eligible for continued participation in the FTP,” BSP said.

External position strong

“The Philippines’ strong external position supports the country’s development goals which will be beneficial to the Filipino public,” it added.

The BSP reported the country gained a $62-million surplus from its international transactions as of July, raising its gross international reserves to $106.7 billion from $105.2 billion in June.

“This puts the Philippines in a favorable position to remain as an IMF financial partner, which is an indication of the country’s commitment to contribute to the global financial safety nets and support the resolution of possible crises,” BSP said.

The country augments international reserves in several ways, including income from exports and foreign investments in stocks, bonds, and real estate, and capital transfers.