Coloma says Filipinos should be proud the country can now lend money to IMF

"From a perpetual borrower, we are now the lender. Is that not something to be proud of?"

This was the response of Secretary Herminio 'Sonny' Coloma of the Presidential Communications Operations Office to those opposed to government's decision to lend $1 billion to the International Monetary Fund.

Coloma said the Philippines has been a borrower and a recipient of assistance for the past 40 years, but because of financial reforms done by the Aquino administration in consonance with the 'matuwid na daan (straight path),' it can now afford to lend money to help countries in need.

He clarified that the amount to be given to the IMF is lodged with the Bangko Sentral ng Pilipinas and is separate from the funds used by the government to finance its operations.

This separate fund is with the national treasury.

"BSP is an independent monetary authority. It would not affect the amount that would be spent by the government for its operations that is from a totally different source," he explained.

What the government would lend, he said, would come from the BSP account which is a custodian of international reserves. It would not impair nor deplete the capability of the government to finance the everyday needs of the country, said the Secretary.

Coloma said it is the Philippines' obligation to help other countries saddled with financial problems and since it is a loan, the country will get the money back with interest.

"We must understand these things in context because as Filipinos, we should hold our head up high that we have the capability to lend," he said in Filipino dialect.

Coloma was in Baguio City last week for a meeting with Luzon managers of the Philippine Information Agency. - PIA — ARA