Gov't expects P75-B initial Maharlika investment to earn at 6% interest rate

The government is expecting the P75-billion investment that state-run banks contributed to the Maharlika Investment Fund (MIF) to yield earnings at 6% interest rate annually, the Department of Finance (DOF) said.

The DOF, through its budget sponsor Sultan Kudarat Representative Horacio Suansing Jr., made the response Tuesday when asked by Albay Representative Edcel Lagman on the nature of the funds that were invested by Landbank of the Philippines (P50 billion) and Development Bank of the Philippines (P25 billion).

“These funds are earning little interest, around 3% to 5% on government securities, so it was deemed that by investing it in MIF, it will earn a higher interest rate,” Suansing said during the deliberations on the proposed P5.768-trillion budget for 2024 in the House of Representatives.

“We see it earning at 6% and above interest rate,” Suansing said.

Suansing, however, said that the P75-billion investment in MIF is still untouched in the Bureau of Treasury since the board of the Maharlika Investment Corporation, which will  manage the fund, has yet to be constituted.

Asked by Lagman when the Board is expected to be constituted, Suansing replied that it should be in place by the end of the year. —KBK, GMA Integrated News