Talks to extend IMF program set in April

Talks with the International Monetary Fund (IMF) for the extension of the existing stand-by program up to September this year has been set for the first 10 days of April, according to Finance Secretary Jose T. Pardo.

Following a meeting with IMF deputy managing director Shigemetsu Sugiyaki and IMF resident representative Sean Nolan, Pardo said it was agreed to move the talks from the earlier scheduled March to April.

Pardo said it was agreed that the talks be set for April so that the Philippine panel would be adequately prepared to present its program to the IMF.

In their meeting, Pardo said, Sugiyaki extended the IMF's satisfaction with the reforms that the government has been making. He said Sugiyaki highlighted the creation of the Economic Coordinating Council (ECC) which would effectively tighten policy-making.

There was also some discussion on the privatization of the Philippine National Bank and the passage of the Omnibus Power Sector bill.

Pardo said he assured the IMF representatives that those two are on track in the planned timetable.

He said one area which the two IMF officials praise was the decision to place the government financial institutions under the administrative control of the Department of Finance.

According to Pardo, the IMF representatives said "it is the best thing to do." The IMF officials, Pardo said, also assured him that the IMF is willing to be flexible regarding the government's economic program.

However, they wanted to check on the "openness and truthfulness" of the government, he added.

They also wanted to see, Pardo said, "How serious the economic managers are in managing the economy."

Sugiyaki also met with President Estrada Friday night along with World Bank president James Wolfenson.

The IMF and WB normally work on tandem and most of their conditions intertwine.