MANILA — The Land Bank of the Philippines will no longer have to remit its 2022 earnings to the government under an order signed by President Ferdinand Marcos, Jr., Malacañang said Saturday.

Under Executive Order No. 43, which Marcos Jr signed on Oct. 11 but was only made public on Saturday, the percentage of net earnings that the state-run bank should declare and remit to the government will be reduced to 0 percent of its annual net earnings.

• Don't close Landbank accounts amid Maharlika fund fears: Treasury, DBM

Republic Act No. 7656, also known as the Dividend Law, requires all government-owned and controlled corporations (GOCCs) to declare and remit at least 50 percent of their annual net earnings to the national government.

Section 5 allows the President to adjust that rate "in the interest of national economy and general welfare" and on the recommendation of the finance secretary.

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In signing the order though, the President said Land Bank's adjusted dividend rate would only cover the bank's earnings in 2022.

Finance Secretary Benjamin Diokno recommended the adjustment "in order to support the capital position of the Land Bank of the Philippines, maintain its compliance with Bangko Sentral ng Pilipinas regulations on capital adequacy requirements, and expand its role in the economic recovery of industries adversely affected by the COVID-19 pandemic, in the interest of national economy and general welfare," the order read.

Marcos issued a similar executive order for the Development Bank of the Philippines (DBP) in December last year.

For context, the law requires Land Bank and the national government to contribute P50 billion each to the MIF. The Development Bank of the Philippines will put in another P25 billion.

The Land Bank last month already remitted P50 billion to the sovereign investment fund.

According to reports, Land Bank and the Development Bank of the Philippines are seeking relief from capital requirements set by the Bangko Sentral ng Pilipinas after part of their capital went into the Maharlika fund.

• No application yet for proposed Landbank-DBP merger: BSP