Senators raised their concerns over the Maharlika Investment Fund, with Sen. Sherwin Gatchalian pointing out that a P200-billion infusion from the Bangko Sentral ng Pilipinas would delay its capital buildup by at least 17 years. | melvingasconINQ /PDI
Gatchalian expressed concern that putting money into MIF would defeat the purpose of Republic Act No. 11211 or the New Central Bank Act, which was aimed at increasing the BSP’s capitalization from P50 billion to P200 billion.Citing a simulation they conducted on the effects of the MIF, BSP Senior Assistant Governor Iluminada Sicat told the Senate committee that the Central Bank would take 17 years to meet its target capitalization, which was supposedly longer by nine years.
According to Gatchalian, waiting for 17 years is too long, pointing out that “anything can happen in the next 17 years. The sooner we can build up the capitalization of BSP, the better.” But under questioning by Sen. Nancy Binay about what the BSP would consider the ideal scenario, Sicat said this would be for the Central Bank to retain its dividends instead of turning these over to an investment venture.Sen. Risa Hontiveros said she was also concerned about the effects of using the BSP, Land Bank of the Philippines and Development Bank of the Philippines as funding sources for the MIF.
Through letters and in meetings with some senators, the NDC said that it already had the hard assets, systems and people ready to jump-start the formation of a Maharlika Investment Corp.
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