Finance Secretary Ralph Recto yesterday said the Maharlika Investment Fund (MIF) has not been allocated funds in the proposed P6.352 -trillion national budget for 2025.
At the continuation of the Development Budget Coordination Committee briefing at the Senate yesterday, Recto said the Maharlika Investment Corp. (MIC) the entity created to run the MIF, has yet to identify which projects to invest in.
“Well, first of all there is no subsidy in the 2025 NEP (National Expenditure Program) for Maharlika. Admittedly, it is taking time to identify investments that the Maharlika can make. As you know, it is like a startup, we just passed the law last year,” Recto said after Sen. Grace Poe, Finance Committee chair, asked for an update on the status of the MIF.
Recto said the officials of the MIC have been picked and “I think they found their office already”, but are still looking for employees.
He said the seed money of P75 billion from the Development Bank of the Philippines, and Land Bank of the Philippines has been placed in the National Treasury while MIC chief executive officer Rafael Consing is scouting where MIF funds will be invested in.
He said the interests earned from the National Treasury is being used by the MIC to run its operations.
“It is earning interests and it is the interests that they are using for operations. So, the interest rate is about the same, as if let’s say, those funds remained in the Land Bank because it will still be earning interests,” Recto said.
“The CEO is looking for opportunities. But no, he has not come to the board for any particular investment,” he added.
He said the MIC is allowed to invest even if it has not yet completed its staffing “as long as they have the board approval.”
Recto said the MIC will “hopefully” make some investments “within the year.”
Senate deputy minority leader Risa Hontiveros said that for every P1 billion taken from DBP and LBP, around P9 billion in loanable funds are deducted from the said banks.
Recto replied: Possibly…That’s right, it’s nine times in the multiplier effect. But in many instances, many of the DBP and LBP resources are investible funds, and they are also invested in the Treasury. So, maximum is nine, in reality it could be maybe half of that.”
