MANILA - President Ferdinand Bongbong Marcos Jr has issued an executive order adjusting downwards the percentage of net earnings to be declared by the Development Bank of the Philippines, the Office of the Press Secretary said on Friday.

The EO signed last Dec. 9 stated that the percentage of net earnings to be declared and remitted by the DBP to the national government for year 2021 will be reduced to 0 percent of its annual net earnings from 50 percent, pursuant to Sec. 5 of R.A. No. 7656.

R.A. 7656 or 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.

The president upon the recommendation of the Secretary of Finance may adjust the percentage in the interest of the national economy and general welfare, the law states.

"The Secretary of Finance recommended the downward adjustment... in order to support the capital position of the DBP, allow it to comply with Bangko Sentral ng Pilipinas (BSP) regulations, and sustain its role in the economic recovery of industries adversely affected by the COVID-19 pandemic," the President's EO read.

The DBP, along with the state-run Landbank of the Philippines as well as the Bangko Sentral ng Pilipinas are included as funding sources in the proposed Maharlika Investment Fund.

• SSS, GSIS, nat'l budget to be removed as contributors in proposed Maharlika Fund
• SSS, GSIS may still contribute to Maharlika fund, subject to board approval: Diokno

RELATED VIDEO:

Watch more News on iWantTFC