The Philippines and the International Monetary Fund announced Thursday they have agreed in principle on a $1.3 billion standby credit that is expected to spur economic development and open new financing for the debt-strapped country.

The announcement was made after negotiators from both sides met for 40 minutes with President Corazon Aquino."The president was informed the talks were progressing satisfactorily and have covered the main policy issues involved," a joint statement said. "A timetable for completion of all policy and program details has also been generally agreed upon."