Maharlika Investment Corp. (MIC) will not return the P75-billion capital infused by state-run Land Bank of the Philippines and the Development Bank of the Philippines in the sovereign wealth fund, its top executive said in a radio interview.
“No, it was contributed to the capital,” MIC president Rafael Jose Consing Jr. said in an interview on Super Radyo dzBB. Consing was asked if the fund would return the capital infused by LandBank and DBP following the comment by the International Monetary Fund (IMF) on the financial condition of the two state-owned lenders.
President Ferdinand Marcos, Jr. in July 2023 signed into law Republic Act No. 11954, or the Maharlika Investment Fund (MIF) Act of 2023, establishing the Philippines’ first sovereign wealth fund aimed at boosting the country’s economic growth.
LandBank and DBP infused P50 billion and P25 billion, respectively into the MIF.
The IMF said in a report that “implementing capital restoration plans for two state-owned banks following their contribution to the Maharlika Investment Corporation’s start-up capital and exiting regulatory relief as soon as possible is important.”
Consing said the IMF did not suggest that MIC return the capital to LandBank and DBP, but underscored the importance of recapitalization of the two banks.
LandBank and DBP sought regulatory relief from the Bangko Sentral ng Pilipinas in 2023 following the capital infusions into the MIF.
LandBank, in a statement, reaffirmed its financial strength and stability, following its P50-billion contribution to the MIF. It said it has consistently met and exceeded the minimum requirements of the Bangko Sentral ng Pilipinas (BSP) for capital adequacy ratio (CAR).
LandBank said that as of Nov. 30, 2024, its CAR remained at a healthy level of 16.42 percent, above the 10-percent regulatory threshold.
