PH won’t need IMF liquidity aid – Diokno

The Bangko Sentral ng Pilipinas confidently said that it would not need extra help from the International Monetary Fund to stay liquid amid the coronavirus crisis.

BSP Governor Ben Diokno said there was “no need to avail” of the short-term liquidity line offered by the global monetary authority as the country still has enough arsenal to stand on its own.

While other IMF members have chosen to access the new borrowing facility to address external shocks, the Philippines won’t need it thanks to its relative “position of strength.”

“As I said before, structural reforms and sound economic management have helped the Philippines enter the COVID-19 crisis from a position of strength,” Diokno said, noting that the country has enough buffers to cover for any shocks amid the COVID-19 pandemic.

An ample external payments surplus, stable peso-dollar rate, hefty gross international reserves, as well as a “manageable” debt-to-GDP ratio make the case for resilience, he said.

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