MANILA — President Rodrigo Duterte has reduced the dividend rate the state-run Land Bank of the Philippines (LBP) must remit to the national government for 2018.
Under Executive Order (EO) 108 inked by Duterte on March 18, the dividend rate of LBP is adjusted for zero percent from the current 50 percent of its annual earnings.
Duterte made the downward adjustment of the LBP’s net earnings following the recommendation of Finance Secretary Carlos Dominguez III.
The reduction was meant to “support the viability and mandate of the LBP, its liquidity, capital position, and medium-term plans and programs, in the interest of national economy and general welfare,” according to the order.
“The adjusted dividend rate set forth in Section 1 of this Order is only applicable to the LBP for CY (calendar year) 2018,” EO 108 read.
Under Republic Act (RA) 7656, all government-owned or -controlled corporations (GOCCs) are mandated to declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.
The President of the Philippines, however, may adjust the percentage of annual net earnings to be declared by a GOCC, the RA 7656 notes.
EO 108 takes effect immediately.
Malacañang released a copy of the order on Thursday or a day after it was signed by Duterte. (PNA)