MANILA – President Ferdinand R. Marcos Jr. has adjusted the percentage of annual net earnings to be declared by state-run Development Bank of the Philippines (DBP) for 2021.
Marcos issued Executive Order (EO) 8, cutting the dividend rate of DBP to zero percent from the current 50 percent of its annual earnings.
The downward adjustment was made following the recommendation of Finance Secretary Benjamin Diokno.
Marcos ordered the reduction to support the capital position of the DBP, allow it to comply with Bangko Sentral ng Pilipinas regulations and sustain its role in the economic recovery of industries adversely affected by the coronavirus disease 2019 (Covid-19) pandemic.
“The various programs of the DBP aim to address gaps in the agricultural sector and increase the resilience of the agricultural value chain in the pursuit of national food security,” the EO read.
EO 8 also emphasizes that the DBP’s programs seek to provide credit support for infrastructure and logistics facilities; micro, small and medium enterprises; environment and social services; and community development, to drive immediate economic growth and recovery.
“The adjusted dividend rate set forth in Section 1 of this Order is applicable only to the DBP for CY (calendar year) 2021,” EO 8 said.
Under Republic Act (RA) 7656, all government-owned or -controlled corporations (GOCCs) are mandated to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.
The President of the Philippines, however, may adjust the percentage of annual net earnings to be declared by a GOCC, in the interest of national economy and general welfare, according to RA 7656.
EO 8, signed by Marcos on Dec. 9, takes effect immediately.
4 Replies to “Marcos adjusts DBP’s dividend rate for 2021”