De Leon: Maharlika fund to lessen PH borrowings

NATIONAL Treasurer Rosalia de Leon on Wednesday expressed optimism that the proposed Maharlika Investment Fund (MIF) would significantly lessen the need for borrowings to fund key projects.

De Leon was responding to a query from Sen. Mark Villar, who presided over an initial hearing by the Senate Committee on Banks, Financial Institutions and Currencies on House Bill 6608 and Senate Bill 1670.

Both measures call for the establishment of the Maharlika fund, which has generated controversy over its funding sources and alleged lack of safeguards.

During a hybrid hearing, de Leon said investible funds would be sourced from government agencies and financial institutions, which is then expected to attract the private sector.

Accumulated funds can be used for projects that the government previously implemented using borrowings or loans, she said.

De Leon said MIF would have an initial capital of P50 billion from state-owned Land Bank of the Philippines (LandBank) and P25 billion from Development Bank of the Philippines (DBP).

“This is only a small portion of the P1.3-trillion investible fund of LandBank and of the P800 billion of the DBP,” she added,

“Aside from this, funds from Pagcor (Philippine Amusement and Gaming Corp.), royalties and other special assessments in natural resources, privatization of government assets and borrowings or loans will form part of the capital of MIF,” de Leon continued.

Addressing the criticism that the Philippines did not have enough money, she said that over 50 countries, including Indonesia, Vietnam and Kenya, were at the same economic level as the Philippines and had their own sovereign wealth funds.

The Marcos government has tagged the establishment of the MIF as a priority, saying it would ensure the country’s economic transformation, growth and sustainability.