REPUBLIC Act (RA) 11954 established the Maharlika Investment Fund (MIF) to strengthen the investment activities of the country's top-performing government financial institutions and promote economic growth and social development. It was established consistent with laudable State policy to generate, preserve and grow national wealth, create jobs, promote trade and investments, foster technological transformation, strengthen connectivity, expand infrastructure and achieve energy, water and food security. In this article, we examine the safeguards which are set out in the law.
The MIF, through the Maharlika Investment Corp. (MIC), shall be funded with funds coming from the national government, Land Bank of the Philippines (LBP), Development Bank of the Philippines (DBP), dividends from the Bangko Sentral ng Pilipinas, and possibly, investments from select government-owned and -controlled corporations (GOCCs) or government financial institutions (GFIs). However, the investments from LBP, DBP and other GFIs should not exceed 25 percent of their net worth, and investments of GFIs and GOCCs shall be subject to their respective investment and risk management strategies.
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