BSP to remit P20B dividends to fight COVID-19

The Bangko Sentral ng Pilipinas (BSP) will provide another P20 billion to the national government to support efforts to combat the spread of the coronavirus disease 2019 (COVID-19) in the country.

In a statement, the central bank said the advanced dividends constitute 87% of the estimated total dividends based on the BSP's unaudited financial statements for 2020.

BSP Governor Benjamin Diokno said the remittances will be made on Thursday, March 26, through direct credit to the Treasurer of the Philippines-Treasurer Single Account, which is maintained with the BSP.

"We are one government. We are one Filipino nation. And we, at the BSP, shall support all efforts to fight this once-in-a-lifetime pandemic and keep the economy afloat," he added.

Under its newly amended charter, the BSP is no longer mandated to remit dividends to the national government, provided that all declared dividends shall be released immediately for the payment of the central bank's increase in capitalization.

The BSP said, however, that the Monetary Board has approved to defer the application of the BSP's dividends for 2019 and remit P20 billion as advance or partial dividends to support the national government's programs during the enhanced community quarantine.

"The BSP has and is ready to employ the necessary tools in its arsenal to address the impact of COVID-19 while staying true to its mandate," said Diokno.

The BSP on Tuesday announced a reduction of 200 basis points on the reserve requirement for all universal and commercial banks starting next Monday, March 30.

A day earlier, the central bank on Monday said it will purchase P300-billion worth of government securities to support government programs against the spread of COVID-19.

The BSP also last week slashed policy rates by 50 basis points, providing economic stimulus given the COVID-19 health crisis.—AOL, GMA News