The planned operationalization of the Maharlika Investment Fund (MIF) before the end of the year became closer to fruition after it received fresh funding from state-owned Development Bank of the Philippines (DBP)
In a text message to GMA News Online on Friday, DBP president and CEO Michael de Jesus confirmed that the lender remitted to the Bureau of Treasury (BTr) its mandatory contribution for the initial capital of the MIF —the country’s very first sovereign wealth fund.
“Yes, we remitted P25 [billion] to BTR today,” de Jesus said.
The DBP chief’s announcement came on the heels of Land Bank of the Philippines’s announcement that it remitted to Treasury its mandated P50-billion contribution to the Maharlika Investment Corporation (MIC), pursuant to the Republic Act No. 11954, which created the MIF.
The MIC is a government-owned company, that will manage the MIF —a pool of funds sourced from state-run financial institutions that will be invested in high-impact projects, real estate, as well as in financial instruments.
Finance Secretary Benjamin Diokno earlier expressed optimism that the MIF will be operational before the year ends.
“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 year end,” Diokno was quoted as saying in a news release by Landbank.
Under the law, the initial capitalization of the MIF would be sourced from Landbank at P50 billion, DBP at P25 billion, and the national government at P50 billion.
The contribution from the national government will come from the following sources:
- Bangko Sentral ng Pilipinas’ total declared dividends
- National government’s share from the income of PAGCOR
- Properties, real and personal identified by the DOF-Privatization and Management Office
- Other sources such as royalties and/or special assessments
Under the law, the MIF has an authorized capital stock of P500 billion.
The Bangko Sentral ng Pilipinas’ Monetary Board has earlier declared a dividend of P31.859 billion “in favor of the national government,” which will then be used to bankroll the MIF.
In July, President Ferdinand Marcos Jr. signed into law the measure creating the MIF.
Meanwhile, the implementing rules and regulations of the MIF law was released late last month.
Diokno earlier said that the MIC’s Board of Directors are expected to be appointed in September. The board will be composed of the Finance secretary, who will serve as the ex-officio chairperson; presidents of Landbank and DBP; two regular directors; and three independent directors from the private sector.
As the MIC is yet to be organized, the Finance chief said the initial capital for the MIF would be held by the Treasury in escrow.—LDF, GMA Integrated News
