President Ferdinand R. Marcos Jr. has adjusted the percentage of annual net earnings to be declared by the state-run Land Bank of the Philippines for the calendar year 2022, no longer requiring it to remit a certain percentage of earnings to the national government.

Under Executive Order 43 that was issued on 11 October but made public on Saturday, Marcos slashed the dividend rate of LandBank to zero percent from the current 50 percent of its annual earnings.

"The adjusted dividend rate set forth in Section 1 of this Order is applicable only to the LandBank for CY 2022," the EO read.

The downward adjustment was made "in the interest of national economy and general welfare" upon the recommendation of Finance Secretary Benjamin Diokno.

The Landbank and the Development Bank of the Philippines had earlier remitted P50 billion and P25 billion, respectively, to the Bureau of the Treasury for the initial capital of the Maharlika Investment Fund.

Republic Act 7656 states that all government-owned or -controlled corporations are required to declare and remit 50 percent of their annual net earnings as cash, stock, or property dividends to the national government.

But the same law also authorizes the President, upon the recommendation of the Secretary of Finance, to adjust the percentage of annual net earnings to be declared by a GOCC "in the interest of national economy and general welfare."

Marcos ordered the reduction in the dividend rate to support LandBank's capital position and maintain its compliance with the Bangko Sentral ng Pilipinas' regulations on capital adequacy requirements.

The order also expands the LandBank's role in the economic recovery of industries adversely affected by the coronavirus disease 2019 pandemic.