BSP Says Wealth Fund Will Slow Down ₱200B Capitalization Target

The Bangko Sentral ng Pilipinas has stated that passing the bill for the Maharlika Investment Fund would push back the implementation of the 2018 law that was set to increase the capitalization of the BSP from ₱50 billion to ₱200 billion.

“It will take a longer time for us to reach P200 billion,” mentioned BSP Deputy Governor Francisco Dakila Jr. during a Senate hearing.

Dakila has stated that if the Maharlika Wealth Fund were to be approved in its current state, which would ask the BSP to remit 100% of their dividends in the first two years and then 50% after, this will take the BSP 14 years to reach their capitalization target.

Dakila likewise mentioned that the BSP would only need half of the time to hit the P200 billion capitalization goal if the Maharlika fund does not become law. He adds that the BSP will be able to handle the predicted setback as the balance sheet has improved.

Back in January, Rep. Joey Salceda made mention of a “re-engineered” version of the Maharlika fund which President Ferdinand Marcos Jr. presented to the World Economic Forum in Switzerland.

In this alternate version, the BSP dividends would not be used to fund the wealth fund, Instead, seed money would be taken from an estimated ₱44.33 billion in annual dividends from government corporations.

The Maharlika fund is one of ten priority bills identified by Malacañang which is targeted to be approved in Congress when it adjourns on June 2 of this year.

Source: Philstar