17-9-2023 (MANILA) The Development Bank of the Philippines (DBP) has announced the release of 25 billion pesos (US$440 million) to the government as its initial capital contribution towards the establishment of the nation’s sovereign wealth fund. This significant move paves the way for the full operationalization of the Maharlika Investment Fund, according to a statement by Finance Secretary Benjamin Diokno.
As per the legislation governing the sovereign wealth fund, DBP is mandated to provide 25 billion pesos as its initial capital, while the Land Bank of the Philippines and the government will contribute 50 billion pesos each. The Land Bank has already fulfilled its commitment by remitting its complete contribution, as reported by the Philippine Star.
The Maharlika Investment Fund holds strategic importance as it is a key initiative spearheaded by President Ferdinand Marcos Jr. The fund aims to stimulate investments, upgrade infrastructure, and generate additional funds to supplement the national budget. President Marcos and his cabinet are determined to replicate the success achieved by sovereign wealth funds in other countries.
