BSP Gov. Felipe M. Medalla said the central bank is comfortably on a positive financial condition to let go of its profits in favor of the Marcos government’s Maharlika Investment Fund (MIF).
Bangko Sentral ng Pilipinas Governor Felipe M. Medalla said the central bank is comfortably on a positive financial condition to let go of its profits in favor of the Marcos government’s Maharlika Investment Fund for which the central bank will contribute 100 percent of its declared dividends in the first two years of the wealth fund.
The government financial institutions , including BSP, will fund the MIC which will mobilize and utilize the investment fund to maximize returns. The GFIs will later increase their contributions to the MIC. “We support the provisions that explicitly mentions the BSP, in particular the contribution that the dividends declared by BSP how the dividends will be disposed of and then going to the sovereign wealth fund,” said the BSP chief.
Previously, when the wealth fund was first being discussed in the Lower House, Medalla was cautious about early proposals of tapping the country’s US dollar reserves to fund the MIF. Since 2020, at the onset of the Covid-19 pandemic, the BSP has been remitting its dividends to the government to help in financing the pandemic response even though it was no longer required to do so under its revised charter. With the current version of the MIF, it will take some time until the BSP is able to have its P200 billion capitalization.
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