BSP commits P35B to Maharlika Fund
The creation of the MIF would serve ‘as a vehicle to move forward the Agenda for Prosperity and achieve the economic goals of the administration.’
Daily TribuneThe creation of the MIF would serve ‘as a vehicle to move forward the Agenda for Prosperity and achieve the economic goals of the administration.’
The Bangko Sentral ng Pilipinas has emphasized the need to maintain a solid gross international reserve to defend the peso against volatility as it commits its dividend to the proposed Maharlika Investment Fund by House Speaker Martin Romualdez and presidential son, Ilocos Norte Rep. Sandro Marcos.
This developed as Finance Secretary Benjamin Diokno said Friday country's economic leaders had backed the establishment of the MIF despite resistance from some parties worried about the possibility of corruption and transparency.
BSP deputy governor Francisco Dakila Jr. said during the House committee hearing on appropriations on the proposed MIF Act, "The entire dividends of the BSP can be used to fund the Maharlika Wealth Fund." He added the BSP would allocate between P30 billion and P35 billion to the planned sovereign wealth fund.
When asked if he meant the P30 to P35 billion in dividends previously reported during the hearing, Dakila replied that would be the initial allocation.
After making the initial contribution, according to Dakila, the BSP would only send the MWF 50 percent of its earnings because the other 50 percent would go toward the BSP's capitalization.
According to him, the BSP is still working to increase its target capital in accordance with its revised charter.
Dakila declared that once the BSP is fully capitalized, it would give 100 percent of its dividend to MWF.
He also said BSP's payment to the MWF would not impact its foreign reserves.
In a press conference on Friday, Diokno asked Congress to swiftly enact the legislation establishing the fund because, according to economic managers, the proposed Maharlika fund would increase government revenue.
He added that the creation of the MIF would serve "as a vehicle to move forward the Agenda for Prosperity and achieve the economic goals of the administration."
Citing the sentiments of economic managers, Diokno said the Maharlika fund will also have "intergenerational benefits." These include improving future generations' access to investment income and easing fiscal pressures.
Diokno also echoed the economic managers' confidence that the fund's future managers will ensure effective utilization and administration of the investible public funds.
"They will be able to ensure the availability of an alternative high-return investment platform, obtain the best absolute return for the funds, find additional sources of liquidity as the need arises, and perform better risk management, given additional layers of checks and balances in the use of investible funds," he said.
According to Diokno, the economic managers said MIF would help the country increase investments and finance for infrastructure and rural development projects like agriculture.
