PHNIO-PNoy: PALACE ON $1-B IMF LOAN: PHILIPPINES DUTY-BOUND TO HELP POOR NATIONS

PALACE ON $1-B IMF LOAN: PHILIPPINES DUTY-BOUND TO
HELP POOR NATIONS
MANILA, JUNE 29,
2012 (INQUIRER) By Norman
Bordadora - It is the Philippines' obligation to help countries in dire
need of funding through the International Monetary Fund (IMF), Malacañang said
on Thursday.
Edwin Lacierda, President Benigno Aquino's spokesperson, made the remark in
response to a suggestion that the Philippines' $1-billion loan to the IMF was
rather risky for a country that continues to deal with hunger and poverty
issues.
"We have been a recipient of IMF assistance for the past 40 years. Now, that
we have been considered a creditor nation, we feel it is our obligation to
assist those nations who require funding from IMF," Lacierda told reporters in a
news briefing.
"This would also help in stabilizing the crisis that's going on in Europe. As
to whether it is risky or not, we believe that IMF will act judiciously on the
funds," he added.
Lacierda said the IMF now has a standby fund for around $456 billion and the
Philippines contributed $1 billion to that fund.
"It is our responsibility; it is part of our obligation [to the] IMF who has
assisted us during our times of crisis in the Philippines," Lacierda said.
In a separate statement, Bangko Sentral ng Pilipinas Governor Amando Tetangco
said the Philippines will get returns from the loan it extended to the IMF.
"For nearly 40 years until 2006, the Philippines itself was a net borrower
from the IMF. We finally fully paid our loans to IMF in December 2006 as the
implementation of continuing reforms have made our economy stronger," Tetangco
said.
"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. This is a loan to the IMF and we will get our
money back with interest," he said.
"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.
FROM INTERAKSYON
ONLINE
$1-B LOAN TO IMF WILL BACKFIRE AGAINST OFWs, SAYS
- MANGGAGAWA PARTY

[PHOTO - Renato Magtubo of Partido ng
Manggagawa at a rally against EVAT. Photo taken from his
Facebook account.]
The $1-billion loan of the Philippines to the International
Monetary Fund (IMF) will backfire against overseas Filipino workers (OFWs)
there, the Partido ng Manggagawa (PM or Workers' Party) said at a rally
Wednesday.
"The $1 billion -- which is the blood and sweat of our OFWs -- will harm our
own migrant workers in Europe since the IMF's austerity schemes dictate cuts in
wages, reduction in social programs, and liberalization of labor
contractualization," PM national chairman Renato Magtubo said.
"By extending the loan to the IMF, our OFWs and Europeans workers will earn
less, lose public services, and be easier to fire," he added.
Rivera said only the bankers will benefit from the IMF bailout.
"Ordinary Europeans and migrant workers suffer the pains of austerity. In
opposing the loan to the IMF, we are extending the hand of solidarity to our
brothers and sisters in Europe. It is amazing that PNoy readily comes to the aid
of European bankers but he is blind and deaf to the cries of the Filipino
workers for wage increase and regular jobs here in the country," he said.
On Wednesday morning, PM and Philippine Airlines Employees' Association
(Palea) members picketed the Bangko Sentral headquarters and office of the
Department of Finance to protest against the controversial loan, chanting "Help
the needy not the greedy! Support Europeans thru solidarity not austerity!"
Gerry Rivera, Palea president, noted that Europeans themselves have rejected
the IMF bailout and its conditionalities.
"By protests and through the polls, the workers and people of Greece, Spain,
Portugal, Ireland, Italy and France have all rejected IMF austerity," Rivera
said.
Today's rally today also coincided with the 9th month anniversary of Palea's
fight against outsourcing. Last September 27, Palea launched a protest action
against contractualization and up to now maintains a picketline outside the PAL
In-Flight Center. Palea has called on the new management of the national carrier
led by Ramon Ang to revive the company by reinstating its regular workers.
"After nine months of protest, Palea continues to labor for justice," Rivera
said.
'No global stability'
In reply to Presidential spokeman Edwin Lacierda's assertion that the loan
would help global stability, Magtubo said IMF is actually "destabilizing the
economies of Europe."
Despite receiving several bailouts from the IMF, Greece has been in recession
for five years running with unemployment at more than 20 percent in general but
more than 50 percent for the youth, he said.
This year, Spain fell into a double-dip recession with unemployment rates
similar to Greece, he said. This will be aggravated by austerity measures
dictated in the recent bailout scheme, he added.
"Just like Europe, the Philippines too is a victim to the anti-labor and
anti-people policies of the IMF. Liberalization has led to the collapse of
Philippine industry and agriculture resulting in job losses and rural
unemployment. Privatization and deregulation have led to price hikes and
worsening poverty," Rivera explained.
That is why, he said, "It is time for a paradigm shift," that is, uphold
growth and hope instead of recession and injustice in both Europe and Asia.
Shift to a new paradigm of living wages, regular jobs, taxes on the rich, social
services, national industrialization, and agrarian reform," Rivera added.


Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
All
rights reserved




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