Marcos exempts Landbank from giving earnings to gov’t after funding Maharlika

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Landbank’s P50 billion contribution to the controversial sovereign wealth fund has left it in a weakened state. Now, the government needs to help keep it financially strong.

MANILA, Philippines – The Landbank of the Philippines will no longer be required to remit any portion of its earnings for calendar year 2022 to the national government, President Ferdinand Marcos Jr. ordered.left them in a weakened state. Both Landbank and DBP have already requested regulatory relief from some central bank rules, which will help them in rebuilding their capital. (READ:

“Pursuant to Section 5 of RA No. 7656, the percentage of net earnings to be declared and remitted by to the National Government for CY 2022 is adjusted from fifty percent of its annual net earnings to zero percent,” Marcos declared in Landbank’s 0% dividend rate under the executive order will only be applicable for its 2022 calendar year earnings.

Although the executive order mentioned the need for Landbank to rebuild its capital, it did not mention Landbank’s P50 billion required contribution to the Maharlika fund that compromised its capital position in the first place.

 

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