Money

Landbank, DBP get massive capital infusion under Duterte gov’t

The Duterte government has injected a combined P53.3 billion in cash into state-run Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP) over a five-year period, larger than the combined capital infusions from all administrations since the two banks were established.

Landbank received a total of P38.79 billion under President Duterte as of Feb. 28, 2021, accounting for 72.11 percent of the bank’s total paid-up capital.

DBP, on the other hand, got a total of P14.5 billion from the current administration, according to its president Emmanuel Herbosa.

Since Duterte took over in 2016, the government had already invested a total of P38.79 billion in Landbank, of which P27.5 billion was infused last February.

This is in line with the provisions of Republic Act 11494, or the Bayanihan to Recover as One Act (Bayanihan 2), to support the institutions wholesale banking services and extend low-interest rate loans to sectors severely affected by the economic shock of the coronavirus.

Landbank’s paid-up capital of P1.8 billion in 1992 grew at a slow phase, as the past administrations did not inject capital into the bank but instead issued stock dividends.

It was only during the administration of then president Benigno Aquino III that the government infused capital into Landbank in the amount of P3.03 billion.

As for DBP, P12.5 billion of the P14.5 billion infused by the Duterte administration was in line with the Bayanihan 2 law provisions to enable the bank provide wholesale banking services and cover the loans and interest subsidies of pandemic-hit enterprises.

The P12.5 billion infusion represents 39 percent of DBP’s total paid-up capital of P32 billion.

0 0 vote
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments
0
Would love your thoughts, please comment.x
()
x