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DOF cites capital infused to LBP, DBP hits P53.3 billion

The Department of Finance (DOF) building is seen in this BusinessMirror file photo.

THE Department of Finance (DOF) cited the capital of P53.3 billion in cash it infused into the Land Bank of the Philippines (LandBank) and the Development Bank of the Philippines (DBP) over a 5-year period is larger than the combined capital infusion from all administrations.

The finance department said last Thursday that LandBank received a total of P38.79 billion in capital infusion as of February 28, 2021, which accounts for 72.11 percent of the total paid-up capital of the bank.

Meanwhile, DBP President Emmanuel G. Herbosa said the bank received a total of P14.5 billion in capital infusion.

The bulk of the capital infusion to LandBank and the DBP was done through Bayanihan 2. The DOF said P27.5 billion went to LandBank while the DBP got P12.5 billion. This was made to support the institutions’ wholesale banking services as well to extend low-interest rate loans to sectors affected by the lockdown measures that nearly crippled the economy. The P12.5-billion infusion to DBP represented 39 percent of its total paid-up capital of P32 billion.

As for LandBank, the DOF said its paid-up capital of P1.8 billion in 1992 grew at a slow phase to P11.97 billion in 2010 as the past administrations did not inject capital into the bank but was instead issued stock dividends during the period.

LandBank issued stock dividends worth P5.6 billion during the administration of then-President Ramos; P1.6 billion during the term of ex-President Estrada and P2.97 billion during the time of former President Arroyo.

It was only during the administration of President Benigno Aquino III that the government infused capital into LandBank in the amount of P3.03 billion, the DOF added.

Read full article on BusinessMirror

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