THE P107.23-billion in excess funds that Philippine Deposit Insurance Corp. (PDIC) remitted to the Bureau of Treasury (BTr) last year supports government initiatives to boost the economy by helping fund priority projects, the Department of Finance (DOF) said in a statement yesterday.
The PDIC, one of the top dividend contributors in 2023, remitted P14.05 billion in dividends in 2023.
Last year’s remittance of idle funds of the PDIC to the BTr was a one-time undertaking.
The DOF said last year’s remittance is in compliance with the congressional mandate under the General Appropriations Act of 2024 and in accordance with the opinion rendered by the Office of the Government Corporate Counsel.
The DOF in 2024 ordered the remittance of idle funds of the PDIC, as well as the Philippine Health Insurance Corp., totaling to at least P200 billion for both agencies.
A temporary restraining order was eventually issued by the Supreme Court against the transfer of idle funds of the PhilHealth to the National Treasury, while the PDIC was able to completely remit the funds.
The idle funds now form part of the PDIC’s Deposit Insurance Fund (DIF) which the agency uses to pay claims on insured deposits and provide financial assistance to banks.
With the dormant fund tapped to support other priority projects, the DIF now stands at around P250 billion.
“We assure the public that after the remittance, the Deposit Insurance Fund of the PDIC remains adequate to cover risks in the banking system and that the PDIC is still capable of delivering its services effectively, in case of insurance calls,” PDIC president Roberto Tan said in the statement.
“The DIF continues to be maintained within the target level set by its Board of Directors based on international best practices,” Tan added.
According to the DOF, the remittance has significantly contributed to funding major infrastructure and social programs, such as the maintenance, repair and rehabilitation of major infrastructure facilities; the Protective Services for Individuals and Families in Difficult Circumstances/Assistance to Individuals in Crisis Situations; the Philippine Food Stamp Program; various projects to advance the government’s disaster-related infrastructure projects; and rural electrification efforts through the Financial Subsidy for the Purchase of Photovoltaic Mainstreaming (Solar Home System).
Additionally, the funds have supported counterpart financing for foreign-assisted projects, including the Panay-Guimaras-Negros Island Bridges, Metro Manila Subway Project, Philippine Multi-Sectoral Nutrition Project, Mindanao Inclusive Agriculture Development Project, Cebu-Mactan Bridge and Coastal Road Construction Project, North-South Commuter Railway System, Support to Parcelization of Lands for Individual Titling Project, Teacher Effectiveness and Competencies Enhancement Project, and the Philippine Fisheries and Coastal Resiliency Project, among others.