Business World
THE INTERNATIONAL Monetary Fund’s (IMF) approval of reforms that will shift more voting power to emerging markets will benefit the Philippines, central bank officials said.
"The approved reform will double the Philippines’ quota, which would result in an increase in financing that the Philippines can potentially obtain from the Fund," Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said in an e-mail.
In a separate e-mail, central bank Deputy Governor Diwa C. Guinigundo said, "In SDR (special drawing rights) and US$ terms, our share will almost double. However, as a percent share to the total, it will increase by very, very small amount."
The Philippines’ IMF quota amounts to 879.9 million in SDR. It has 9,049 votes, equivalent to 0.41% of the total held by the institution’s member countries.
A quota determines a member country’s financial commitment, voting power as well as access to financing. It is denominated in SDR, the IMF’s unit of account, which is based on a basket of four currencies: the euro, yen, pound sterling and the US dollar.
The quota assigned to a country is largely based on its economic size.
The IMF’s Board of Governors last week approved quota reforms recommended by the institution’s Executive Board.
Among others, it involved the doubling of quotas to 476.8 billion in SDR (about US$733.9 billion) and a shift of quota shares to "more than 6% to dynamic emerging market and developing countries and more than 6% from overrepresented to underrepresented countries," the IMF said in a statement.
Mr. Tetangco said the central bank supported the reform.
"We believe it would help balance representation of the emerging market economies and developing countries in the Fund," he said.
"At the same time, this move is expected to also help ensure that the IMF would have sufficient resources to effectively carry out its mandate in the post-crisis era," he added. -- L. D. Desiderio
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