In a recent development, the Land Bank of the Philippines, a government-owned institution, has successfully transmitted its required contribution to the Bureau of the Treasury (BTr) to establish the MIF, which marks the country’s inaugural sovereign wealth fund.
Pursuant to Republic Act No. 11954, the Landbank’s contribution of P50 billion was made to the Maharlika Investment Corporation (MIC), a government-owned entity designated to oversee the MIF.
This remittance by the state-owned bank occurred several months following an announcement by Finance Secretary Benjamin Diokno, who also chairs the Landbank, revealing the approval of the P50 billion investment in the MIC by the bank’s board.
Diokno was quoted as stating that Landbank’s P50 billion investment in the MIF was officially settled with the BTr on Thursday, September 14, 2023, coinciding with the enactment of the MIF enabling law and the issuance of its Implementing Rules and Regulations (IRR) by the BTr.
Adding to this significant development, the MIF’s operationalization before the year’s end received an additional boost through fresh funding from the Development Bank of the Philippines (DBP), another government-owned institution.
DBP’s President and CEO, Michael de Jesus, confirmed the remittance of their mandatory P25 billion contribution to the BTr, solidifying the establishment of the MIF as the country’s inaugural sovereign wealth fund.
This announcement by DBP followed closely after the Land Bank of the Philippines’ declaration of its P50 billion remittance to the Treasury, in accordance with Republic Act No. 11954 and the creation of the MIF.
The MIC, a government-owned company, will be responsible for managing the MIF, a pool of funds drawn from state-run financial institutions.
These funds will be strategically invested in high-impact projects, real estate, and various financial instruments. (ai/mnm)
