Was able to catch a news headline on Rappler.com and this one is really a good news.
Philippines, from IMF borrower to lenderPosted on 02/22/2012 4:26 AM | Updated 02/22/2012 12:58 PMMANILA, Philippines - The Philippines lent over $125 million to the ailing economies in Europe through the International Monetary Fund (IMF) in 2011.
This marks a dramatic reversal in the Philippines' relationship with the multilateral lender. For almost 45 years, the Philippines was an IMF borrower.
It started in 2006, when the Bangko Sentral ng Pilipinas prepaid all outstanding debts of the government with the IMF. Then in 2010, the Philippines joined a pooled funds where countries with strong external position lend to borrowing members.
Under this mechanism, called Financial Transactions Plan (FTP), the Philippines was classified as a "creditor," meaning its foreign exchange contributions to the fund may be used to provide financial assistance to members.
These transactions earn interest and the funds can still be technically counted as part of the Philippines' international reserves.
The BSP reported on Tuesday, February 22, that the Philippines has infused $251.1 million in the FTP.
As of end-2011, the BSP said that IMF has disbursed over half of these funds to European countries such as Ireland, Portugal and Greece in an effort to address the financial crisis impacting the European economic zone. (Click here to go to Rappler.com to read the whole article)
I hope we stay that way. If only more and more Pinoys invest in our own country and if our products reach all the ends of the earth we can truly be out of poverty. Let's continue to educate our countrymen about how to use the money well.
Let us not squander money to things that are unnecessary but make well use of it by investing it in stocks, in a small business, or if able lend it to our countrymen who can make it grow within and outside the country.