News Brief No. 97/13

News Brief: Camdessus Welcomes Announcement by the Philippines

July 10, 1997

Michel Camdessus, Managing Director of the International Monetary Fund, today made the following statement in response to actions announced by the Philippine authorities:

"The Bangko Sentral ng Pilipinas has announced that, effective July 11, it will allow greater flexibility of the exchange rate. This policy, which has been taken in response to recent turmoil in regional financial markets and speculative pressures, is consistent with the rapid development of the Philippines’ foreign exchange market and its integration into global markets.

"The Management of the IMF strongly commends the Philippine authorities for their timely and decisive action. Within the next few days, I will be asking the IMF Executive Board to approve the authorities’ request for the extension of the current Extended Fund Facility, which was to expire on July 23, 1997. I have also indicated to the authorities that, at that time, I will recommend to the IMF Board that it make available additional financial resources on which the Philippines could draw to support their comprehensive strategy to safeguard macroeconomic stability.

"I am confident that this set of measures, in conjunction with the authorities’ resolve to maintain fiscal and monetary discipline, will help protect the Philippine economy from the consequences of instability in regional financial markets, and contribute to the restoration of more orderly conditions in these markets. These measures should also ensurethat the Philippines will continue its impressive economic progress of the recent years."