Bilyonaryo - Business

Diokno: BSP’s Maharlika contribution not a threat to financial stability

June 2, 2023

Bilyonaryo.com

The Bangko Sentral ng Pilipinas’ (BSP) contribution to the proposed Maharlika Investment Fund (MIF) is not a threat to its financial stability, according to Finance Secretary Benjamin Diokno.

“The BSP’s financial condition now is much better than when its revised charter was being deliberated upon. In addition the BSP was granted additional tools to conduct its primary mandates,” Diokno told reporters.

Diokno, a former BSP governor, pointed out that at the height of the pandemic, the central bank extended a loan of P540 billion, interest free, to the national government to help the country during its economic distress.

“That’s how good BSP’s finances are,” Diokno said.

According to the finance chief, the requested contributions from the BSP for the initial two years of the MIF (Monetary Integration Facility), capped at P50 billion, will be sourced from dividends previously declared in favor of the national government.

“I estimate that BSP’s dividend for the national government in 2022 would be in the neighborhood of P30 billion,” he added.