State-owned Development Bank of the Philippines (DBP) said Saturday it remitted P25 billion to the Bureau of Treasury (BTr), which represents the bank’s share in the initial seed capital in the Philippines’ pioneering sovereign wealth fund.
DBP president and chief Executive Michael de Jesus said the bank deposited the amount to the BTr on Sept. 14, ahead of the Sept. 17 deadline set by Republic Act No.11954, or the Maharlika Investment Fund Act of 2022, which represented DBP’s tangible commitment to the Maharlika Investment Fund – a priority initiative of President Ferdinand Marcos Jr.
“DBP is enthused with our full contribution to the MIF,” de Jesus said. “We are one with President Marcos, Jr. in ensuring the immediate establishment of the Maharlika Investment Corp. [MIC} which would shepherd the initiatives that would reshape and redefine the country’s economic landscape.”
Under the law, the national government, DBP and Landbank of the Philippines are mandated to provide the initial capital of the MIC, contributing P50 billion, P25 billion and P50 billion each respectively.
President Ferdinand Marcos Jr. signed the Maharlika Investment Fund Law on July 18, 2023, with the implementing rules and regulations taking full effect on Aug. 28, 2023.
Finance Secretary Benjamin Diokno said the completion of the remittance of the two largest state-owned financial institutions in the country would pave the way for the full operationalization of the MIC.
He said numerous foreign and domestic investors were eagerly awaiting the full establishment of the MIC, as the national government is expected to complete the process of appointing highly-qualified and capable individuals who will comprise the MIC governing board.
“We are witnessing a growing interest for investments in the MIF from multilateral financial institutions and foreign investors. With the regulatory requirements in place, and after securing the seed capital from state-run institutions, we are confident that the Fund will be operational by yearend,” Diokno said.
De Jesus said the MIF and MIC are expected to be properly and effectively managed through a strong leadership and corporate governance as envisioned by the administration.
He said the corporation should be able to optimize the use of the government’s financial assets to generate substantial returns and support infrastructure projects in order to promote efficient management of wealth and assets.
“DBP foresees that in the next four to five years, the country should be reaping the gains from both on the financial and developmental fronts as a result of the trailblazing activities of the MIC,” de Jesus said.
Land Bank of the Philippines earlier said it remitted to the Bureau of the Treasury its P50-billion contribution to the Maharlika Investment Corp. (MIC) as mandated by Republic Act No. 11954 which establishes the MIF.
Finance Secretary and LandBank chairman Benjamin Diokno said the bank’s P50-billion investment to the MIF was also settled with the BTr on Sept. 14, 2023.
“The MIF law has put in place adequate safety nets to ensure full disclosure and transparency in the management of the Fund, as well as the integrity and professionalism of the management team that will be entrusted to lead the Maharlika Investment Corp.,” LandBank president Lynette Ortiz said.