Iris C. Gonzales
Philippine Star

The International Monetary Fund (IMF) will be sending a review team to check on the country’s rice crisis as well as the government’s fiscal reform program.

The visit, which is scheduled on June 16 to 20, will be the third for the IMF since the Philippines had been out of the multilateral lender’s post-program monitoring starting April 2007.

The IMF last sent a team to the country in November last year also to check on the progress of fiscal reforms.

The Philippines has been able to exit from the IMF’s   post-program monitoring since April this year but the Fund continues to closely monitor the Philippines as an IMF-member country.

The government’s fragile fiscal position has been a perennial concern for IMF and international credit rating agencies as it would determine how much the Philippines can spend on more important needs such as infrastructure investments and social services.

This year, the government has decided to set aside its balanced budget goal and now expects to incur a deficit of P75 billion.

A ranking official said the IMF would also be looking into the country’s rice problem and the measures being taken to address the situation.

Officials said the team will be meeting with officials of the Department of Finance, Bangko Sentral ng Pilipinas, National Economic and Development Authority, the Department of Budget and Management and the National Food Authority (NFA).

The IMF will also be meeting with businessmen and economists to get their views on various economic policies.

The Philippines was able to exit from the IMF’s post-program monitoring in April 2007, earlier  than the original plan on the Philippines’ exit from  the PPM by 2008 due to progress in the government’s  fiscal reform program.