The administration of President Duterte has infused a combined P53.3 billion in cash into the Land Bank of the Philippines (LANDBANK) and the Development Bank of the Philippines (DBP) – the country’s two main Government Financial Institutions (GFIs) – over a five-year period, larger than the combined capital infusions from all administrations since the two banks were established.
Based on data from the LANDBANK, it has received a total of P38.79 billion in capital infusion under President Duterte as of February 28, 2021, which accounts for 72.11 percent of the total paid-up capital of the bank.
DBP president Emmanuel Herbosa, meanwhile, said the bank has received a total of P14.5 billion in capital infusion under the Duterte administration.
LANDBANK’s paid-up capital of P1.8 billion in 1992 grew at a slow phase, as the past administrations did not inject capital into the bank but was instead issued stock dividends. It was only during the administration of President Benigno Aquino III that the government infused capital into LANDBANK in the amount of P3.03billion.
From 1992 to 2010, the government did not infuse additional capital into LANDBANK but its paid-up capital still increased from P1.8 billion to P11.97 billion due to issuance of stock dividends. LANDBANK issued stock dividends worth P5.6 billion during the administration of then- President Ramos; P1.6 billion during the term of ex-President Estrada and P2.97 billion during the time of former President Arroyo.
Since President Duterte took over in 2016, the government invested a total of P38.79 billion so far in LANDBANK, of which P27.5 billion was infused in February 2021, in line with the provisions of Republic Act (RA) No. 11494 or the Bayanihan to Recover as One Act (Bayanihan 2) to support the institutions wholesale banking services and extend low-interest rate loans to sectors severely affected by the economic shock of COVID-19.
As for DBP, P12.5 billion of the P14.5 billion infused by the Duterte administration into the bank were in step with the Bayanihan 2 law provisions to let the bank provide wholesale banking services and cover the loans and interest subsidies of pandemic-hit enterprises.
This P12.5 billion infusion represents 39 percent of DBP’s total paid-up capital of P32 billion.