Last week, Argentina became the first nation to be censured by the International Monetary Fund (IMF) because of doubts concerning the credibility of its economic data. Specifically the Washington-based lender alleged that President Cristina Fernandez de Kirchner’s government is not addressing reports it understated inflation figures that analysts say are actually more than double the 10.8 percent official rate.
After two and a half years, President Aquino’s “Kung walang corrupt, walang mahirap” mantra, loosely translated as good governance and good economics, has gained traction. Reason to smile, but not yet to celebrate.
This refers to the editorial “Loan as ‘investment’” (Inquirer, 7/2/12). The Bangko Sentral ng Pilipinas (BSP) would like to clarify some of the issues raised in the editorial.
Methinks Sen. Ralph Recto is not exactly right in saying that the country’s planned extension of a $1-billion loan to the International Monetary Fund must first pass legislative approval (Inquirer, 6/27/12).
The Philippine government’s decision to extend a $1 billion loan to the International Monetary Fund (IMF) to supplement the Fund’s war chest of $456 billion to contain the economic crisis in Europe has been justified as assistance to countries in dire need of financial help.
