The Development Bank of the Philippines [DBP]) will not be required to remit any percentage of its annual net earnings last year to the national government.
This after President Ferdinand R. Marcos Jr. issued Executive Order No. 8, which reduced the dividend rate of DBP.
“Pursuant to Section 5 of RA [Republic Act] No. 7656, the percentage of net earnings to be declared and remitted by the DBP to the National Government for CY [calendar year] 2021is adjusted from 50 percent of its annual earnings to zero percent,” Marcos said.
Marcos said the measure aims to allow DBP to “comply with Bangko Sentral ng Pilipinas regulations, and to sustain its role in the economic recovery of industries adversely affected by the Covid-19 pandemic.”
DBP plays a crucial role in providing financial support to farmers, infrastructure and logistics facilities, social service and community development as well as micro, small, and medium enterprises (MSMEs).
The President made the decision upon the recommendation of the Department of Finance.
EO 8 was signed and took effect on December 9, 2022, but it was only posted in the Official Gazette last Thursday.