BSP remits record-high dividends to state coffers

The country’s central bank recently completed remitting a record level of dividends to the government, the first tranche of which was turned over in 2018– an amount made possible by the financial regulator’s efficient operations and strong performance.

In a statement, the Bangko Sentral ng Pilipinas (BSP) declared dividends of P21.8 billion for the fiscal year 2018.

The amount of dividends that the BSP turned over to the government for 2018 is the largest it has declared since the regulator was reestablished in 1993.

“The central bank is glad to contribute to government resources which are essential to fostering inclusive economic growth and enhancing the quality of life of Filipinos,” BSP Governor Benjamin Diokno said.

The BSP handed over P4 billion in partial dividends to the state’s coffers in February 2019 and recently remitted P17.5 billion to complete the turnover to the government.

To date, the BSP has transmitted more than P26.9 billion in dividends to the government under the Duterte administration.

Under the law, government-owned or -controlled firms are required to remit at least 50 percent of their annual earnings to the government.

These funds are used by the national government to finance public services and social programs, as well as subsidize other money-losing state enterprises.

In 2018, dividends from state-owned or controlled companies totaled P40.2 billion, representing a 32-percent increase – a record amount of remittances to the government since the practice was made compulsory 20 years ago.

The top contributors every year included the Philippine Amusement and Gaming Corp. and the Philippine Deposit Insurance Corp.

Edited by TSB