By Katrina Gracia Consebido
Finance Secretary Benjamin Diokno on Monday, Dec. 19, said there is “no link” between the executive order (EO) signed by President Ferdinand R. Marcos Jr., reducing the Development Bank of the Philippines’ (DBP) dividend rate to 0% and the Maharlika Investment Fund (MIF).
“The reduction in the remittance of dividend of LBP (Land Bank of the Philippines) and DBP have been made in the past, long before the MIF was conceived, in order to improve the ability of both government banks to deliver on their mandates and, at the same time, maintain their financial standing,” Diokno explained.
“The grant of dividend relief aims to provide DBP with a stronger capital base in support of its mandated developmental programs,” he added.
The EO noted that the DBP’s programs aim to provide credit support for infrastructure and logistics facilities; micro, small and medium enterprises (MSMEs); environment and social services; and community development, to drive immediate economic growth and recovery.
“The various programs of the DBP aim to address gaps in the agricultural sector and increase the resilience of the agricultural value chain in the pursuit of national food security,” the EO read.
Under the proposed Maharlika Fund Bill, all government-owned or -controlled corporations are mandated to declare and remit at least 50% of their annual net earnings as cash, stock, or property dividends to the national government. -gb
