The deliberate operationalization of the Maharlika Investment Fund (MIF) is gaining traction after it secured preliminary capital from the Land Bank of the Philippines and Bangko Sentral ng Pilipinas (BSP).
“It is safe to say that the fund is well capitalized at the very start and we can start by the end of the year,” Finance Secretary Benjamin Diokno stated throughout his weekly press chat.
The Finance chief stated the BSP’s Monetary Board declared a dividend of P31.859 billion “in favor of the national government,” which is able to then be used to bankroll the MIF.
The Landbank’s Board, Diokno stated, additionally permitted its P50 billion funding within the Maharlika Investment Corporation (MIC) as mandated by Republic Act No. 11954.
With this, President Ferdinand Marcos Jr.’s chief financial supervisor stated, “It is reasonable to expect that the Maharlika Investment Fund will be up and running before the end of 2023.”
On Tuesday, Marcos signed into legislation the measure creating the MIF —the nation’s very first sovereign wealth fund.
The legislation creates the MIC, a government-owned firm, that may handle the MIF —a pool of funds sourced from state-run monetary establishments that can be invested in high-impact initiatives, actual property, in addition to in monetary devices.
The legislation mandates that the MIF could be created by the funds that can be sourced from:
- Landbank: P50 billion
- Development Bank of the Philippines (DBP): P25 billion
- National Government: P50 billion
The contribution from the nationwide authorities will come from the next sources:
- BSP’s complete declared dividends
- National authorities’s share from the revenue of PAGCOR
- Properties, actual and private recognized by the DOF-Privatization and Management Office
- Other sources similar to royalties and/or particular assessments
Diokno additionally stated that the MIC’s Board of Directors —composed of the Finance secretary, who will function the ex-officio chairperson; presidents of Landbank and DBP; two common administrators; and three unbiased administrators from the non-public sector— are anticipated to be appointed in September.
As the MIC is but to be organized, Diokno stated the preliminary capital from BSP and Landbank could be held by the Treasury in escrow.
“When the corporation is organized, that’s when the Treasury will transfer [the funds] to the corporation,” the Finance chief stated.
He added that the implementing guidelines and laws of the MIF legislation is in its remaining phases because the Treasury doesn’t intend to up the 90-day interval to craft the IRR.
“We expect the promulgation of the IRR to be done before the end of August,” Diokno stated. —VAL, GMA Integrated News
Source: www.gmanetwork.com
