Duterte cuts dividend rates of Land Bank, DBP for 2016, 2017
MANILA, Philippines—President Rodrigo Duterte has reduced the dividend rates the state-owned Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP) must remit to the government for 2016 and 2017.
Duterte signed Executive Order No. 89 reducing the dividend rate of LBP from 50 percent to 0 percent for 2016 and 10% for 2017.
The DBP’s dividend rate, meanwhile, was reduced to 0 percent for 2017.
The President issued the order “to support the viability and mandate of the LBP and DBP, their liquidity, capital position, medium-term plans and programs were considered in the determination of their respective reasonable dividend rates on net earnings for selected years.”
Under Republic Act No. 7656, government-owned and -controlled corporations (GOCCs) should declare and remit at least half of their earnings as dividends to the national government.
But the law likewise allows the President, upon the recommendation of the Secretary of Finance, to adjust the dividend rate in the interest of the national economy and general welfare. /jpv
Check the copy of the EO below:
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