IMF starts review of Phl performance

MANILA, Philippines - The International Monetary Fund (IMF) will look into the country’s progress on the fiscal and monetary side and assess the two-year old Aquino administration through a short staff visit, which will commence today.

An IMF team will be in the country from Monday to Thursday to meet with officials of the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF) and the National Economic and Development Authority (NEDA).

On the fiscal side, the IMF team is expected to look into government’s debt sustainability position, progress made on improving revenues and whether or not the budget deficit program for the year would be sustainable.

The IMF group is also expected to look into the country’s poverty reduction program for next year as well as the Aquino administration Philippine Development Program (PDP), the government’s economic blueprint.

The IMF staff visit is part of a regular process undertaken by the Washington-based agency on member countries including the Philippines.

Finance Assistant Secretary Teresa Habitan said the short staff is a smaller version of the regular and bigger Article IV Consultations. Through these consultations, the IMF looks into a country’s financial and economic health to prevent future financial problems.

Habitan welcomed the visit.

“We can take advantage of it,” she said, adding that it would be good to hear of outsiders’ assessment on the country’s economic, monetary and fiscal progress.

Last February, the IMF concluded this year’s Article IV Consultations with the Philippines, which has been out of the IMF’s post-program monitoring since 2007.

At the end of the February meeting, the IMF said in a statement that its Executive Directors commended “the authorities for prudent policies that have underpinned a strong recovery and supported confidence.”

 The IMF also noted that monetary policy “has responded well to changing circumstances.”