Comment from a reader on The Philippines is Changing for the Worse: If the Philippines is doing as well as you say Bugle, why can't it stand on its own 2 feet. Why is it always begging for help, primarily from the United States and Japan. The RP even tried begging from China but was immediately shot down. Is there no shame in the Philippines? Will there ever be the day that we see a sign that says "Men at Work" and we see people are actually working. Will there ever be a time in the Philippines when traffic isn't stopped on highways by people holding cups out for donations. Get to work Philippines, then you may find the beginnings of an improved country. Everyone that really wants to work has already left the place for countries that provide a better life and opportunities to succeed!
From the Bugle: Foreign and military aid is not begging. It’s how countries work together. When the United States borrows hundreds of billions from China, it's not begging it is selling bonds. When the Philippines helped bail out bankrupt Europe in 2012 by lending the IMF $1 billion, it wasn't begging by Europe. Put down your beer and pick up a Wall Street Journal sometime.
In reversal of roles, Philippines lends IMF $1 billion to boost crisis fund
June 20, 2012 9:15 PM
MANILA – The Philippines is lending the International Monetary Fund $1 billion to help stabilize the global economy amid the euro zone’s debt crisis, the Bangko Sentral ng Pilipinas said on Wednesday.
"The Philippines is supporting the global efforts to stabilize the world economy and maintain it on a growth path. This is the reason why the Philippines is extending a $1 billion loan to the IMF. We are a member of the global community of nations and it is also in our interest to ensure economic and financial stability across the globe,” BSP Governor Amando M. Tetangco Jr. said in a statement.
Tetangco said the loan to the IMF is the Philippines’ way of giving back to the world’s so-called lender of last resort after it helped the country address its financial difficulties in the past.
The Philippines had been a net borrower from the IMF for almost 40 years until the country finally settled its loans in 2006.
“Today, our economic fundamentals are sound, our banks are able to meet domestic credit needs, and we are capable of lending $1 billion from our international reserves to the IMF,” Tetangco said.
“This is a loan to the IMF and we will get our money back with interest. In effect, by extending a loan to the IMF that will earn money for the Philippines we are also able to help other nations saddled with financial problems. Other nations have also committed to help IMF address the current financial crisis,” he added.
The $1 billion the Philippines lent the IMF forms part of the $456 billion crisis fund that the lender secured from its member-nations to help insulate the global economy from any spillover from the euro zone’s financial difficulties.