MANILA, Philippines — The Department of Finance (DOF) continues to enforce fiscal discipline on government-owned…
For 2021, PBBM will modify DBP’s dividend rate.
The percentage of annual net earnings that the government-run Development Bank of the Philippines (DBP) would report for 2021 has been modified by President Ferdinand R. Marcos Jr.
Marcos issued Executive Order (EO) 8, which reduced the dividend rate of DBP from the previous 50% of its annual earnings to 0%.
Following Benjamin Diokno, the secretary of finance proposal, ,’s the adjustment was made downward.
Marcos authorized the cut in order to strengthen the DBP’s capital position, enable it to comply with BSP standards, and maintain its contribution to the economic recovery of sectors that had been negatively impacted by the coronavirus disease 2019 (Covid-19) pandemic.
In order to achieve national food security, the DBP’s many programs “seek to solve weaknesses in the agricultural sector and strengthen the resilience of the agricultural value chain.”
In order to promote rapid economic growth and recovery, EO 8 also underlines that the DBP’s initiatives work to support loans for infrastructure and logistical facilities, micro, small, and medium-sized businesses, environmental and social services, and community development.
The DBP for CY (calendar year) 2021 is the only one for which the modified dividend rate stated in Section 1 of this Order is applicable, according to EO 8.
All government-owned or -controlled corporations (GOCCs) must declare and submit at least 50% of their yearly net earnings as cash, stock, or property dividends to the national government in accordance with Republic Act (RA) 7656.
According to RA 7656, the President of the Philippines may modify the percentage of annual net revenues that a GOCC must declare to benefit the country’s economy and general welfare.
EO 8, which Marcos signed on December 9, is now in effect.
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