Bangko Sentral to remit P20B to govt

THE Bangko Sentral ng Pilipinas (BSP) on Thursday said it would remit P20 billion in advance dividends to the national government to further support the Duterte administration in its fight against the coronavirus disease 2019 (Covid-19) pandemic.

In a statement, the central bank said the advance dividends constitute 87 percent of the estimated total dividends, based on its unaudited financial statements for 2020.

The BSP explained that under its newly amended charter, it is no longer mandated to remit its dividends to the national government.

Section 2 of Republic Act ( RA) 7653, as amended by RA 11211, provides that any and all declared dividends of the BSP in favor of the national government shall be released and disbursed immediately for the payment of the central bank’s increase in capitalization, it said.

“Nevertheless, considering this extraordinary time, the Monetary Board has approved to defer the application of the BSP’s dividends for 2019 to the BSP’s capital and remit P20-billion advance/ partial dividends to support the [national government’s] programs during this enhanced community quarantine due to Covid-19,” the BSP added.

It noted that the advance dividends will be remitted on March 26 through direct credit to the Treasurer of the Philippines-Treasurer Single Account, which is maintained with the BSP.

“We are one government. We are one Filipino nation. And we, at the BSP, shall support all efforts to fight this oncein-a-lifetime pandemic and keep the economy afloat,” the agency said.

“The BSP has and is ready to employ the necessary tools in its arsenal to address the impact of Covid-19 while staying true to its mandate,” BSP Governor Benjamin Diokno said.

The central bank pointed out that, to date, it has arranged for the purchase of government securities from the Bureau of Treasury under a repurchase agreement in the amount of P300 billion, cut the reserve requirement ratio by 200 basis points and policy rate by 50 basis points, enabled continued access to banking institutions, and advocated that banks extend the greatest possible help to the economy and the Filipino people.