LandBank, DBP capital already infused in Maharlika fund — MIC

The Maharlika Investment Corporation (MIC) on Monday said the capital of the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) have already been infused into the Maharlika Fund and cannot be returned. 

“HIndi po. Na-contribute na kasi sa capital,” MIC president Rafael Jose Consing Jr. said in an interview on Super Radyo dzBB.

(It can no longer be returned because these have been contributed to the capital already.)

Consing was asked if the MIC will return the funds following the call of the International Monetary Fund (IMF) to swiftly restore the capital of the two banks.

According to Consing, what the IMF was asking was the recapitalization of the funds of the LandBank and the DBP.

“‘Hindi naman po nila sinabing ibalik ninyo mula sa Maharlika ‘yung kapital at ibalik ninyo sa LandBank at DBP. Hindi naman po nila sinabi ‘yun eh,” he said.

(IMF is not asking the Maharlika to return the funds to LandBank and DBP. That’s not what they’re saying.)

“Ang sinabi po nila, kailangan po i-recapitalize ‘yung LandBank at DBP para makaalis na po sila sa kanilang regulatory relief environment. Tama po ‘yan. Naniniwala po ako doon,” he added.

(What it said was LandBank and DBP must be recapitalized so they can get out of the regulatory relief environment. That’s correct. I believe that.)

To recall, LandBank and DBP sought regulatory relief from the Bangko Sentral ng Pilipinas in 2023, as their respective capital infusions into the MIF could render them non-compliant with central bank regulations.

This came after LandBank remitted P50 billion, and the DBP P25 billion to the Bureau of the Treasury (BTr) for the initial capital of the MIF.

Meanwhile, Consing said that the MIC may invest in the sectors of energy, mining, healthcare, and telecommunications and connectivity for 2025. 

Consing said the MIC is exercising due diligence when looking into investments.

“Matagal po ‘yan, ano? Hindi po na kung saan dahil merong pera ay i-cancel po agad natin o i-invest po natin. Dumadaan po tayo sa— actually, ‘yung isang investment na tinitignan po natin, meron po tayong limang due diligence na ginagawa,” he said.

(This will take some time, no? Just because there’s money to be made doesn’t mean we will immediately invest. Actually, for one of our investments, we are doing five due diligence.) —AOL, GMA Integrated News