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May 27, 2024

Landbank approves P50-Billion investment in Maharlika

Finance Secretary Benjamin Diokno announced on Friday that the Land Bank Board has given its approval for a P50-billion investment in Maharlika Investment Corporation, as mandated by Republic Act 11954. Diokno cited that the implementation of the Maharlika Investment Fund is expected to be completed before the end of the year.

During a briefing, Diokno mentioned that the Treasurer of the Philippines, in consultation with the founding GFIs (Landbank and DBP), has already started preparing the implementing rules and regulations for the Fund. He confirmed that they aim to complete the promulgation of the IRR before the end of August, well within the 90-day timeframe allowed by Section 54 of Republic Act No. 11954.

Diokno also revealed that the Monetary Board of the Bangko Sentral ng Pilipinas declared a dividend of P31.859 billion for the national government, based on 50 percent of BSP’s net income after income tax in 2022, which amounted to P63.731 billion.

The creation of the Maharlika Investment Fund Act was signed into law by the President on July 18, marking a significant milestone for the current administration. Diokno emphasized that the Fund will provide an attractive platform for local and foreign capital to directly invest in Philippine ventures and projects.

The Fund’s funding sources include the Land Bank of the Philippines (Landbank), the Development Bank of the Philippines (DBP), privatization proceeds, the Philippine Amusement and Gaming Corp., and Bangko Sentral ng Pilipinas dividends.

It adheres to principles of good governance, transparency, and accountability, and will be used to invest in strategic and commercial activities to promote fiscal stability for economic development and strengthen top-performing GFIs.

The Finance Secretary will serve as chairman of the board of directors in an ex-officio capacity, with the role of managing the Fund entrusted to the president and CEO of the Maharlika Investment Corporation and its directors.