BTr issues Maharlika Implementing Rules and Regulations

The Bureau of the Treasury (BTr) has issued the implementing rules and regulations (IRR) of Republic Act No. 11954, otherwise known as the Maharlika Investment Fund (MIF) Act of 2023 on August 28, 2023.

The IRR was issued following consultations with founding government financial institutions (GFIs), Landbank of the Philippines (LBP) and Development Bank of the Philippines (DBP), and the Technical Working Group consisting of the Department of Finance (DOF), Department of Budget and Management (DBM), Securities and Exchange Commission (SEC), National Economic and Development Authority (NEDA), Office of the Government Corporate Counsel (OGCC), and the Governance Commission for GOCCs (GCG).

The IRR shall take effect 15 days after its complete publication in the Official Gazette or in a newspaper of general circulation.

“The MIF will serve as a crucial financing mechanism to widen fiscal space, ease the burden on local funds, and reduce reliance on official development assistance [ODA] in funding big-ticket projects such as those specified in the recently approved Infrastructure Flagship Project [IFP] list,” Finance Secretary Benjamin E. Diokno said.

“We will pursue public road networks, tollways, railways, green energy, water resources, agro-industrial ventures, and telecommunications. These critical areas offer high rates of return and significant socioeconomic impact. The MIF can also be used for green and blue projects, countryside development, and emerging megatrends such as ESG or environment, social, and governance and cutting-edge technologies,” Secretary Diokno added.

With an authorized capital stock of PHP 500 billion (approximately US$ 8.9 billion), the Maharlika Investment Corporation (MIC) shall act as the sole entity to mobilize and utilize the MIF for investments in transactions that will generate optimal returns on investments (ROIs), while contributing to the overall goal of reinvigorating job creation and accelerating poverty reduction by sustaining the economy’s high growth trajectory, while ensuring sustainable development.

The National Government shall source its PHP 50 billion contribution from 100 percent of the dividends of the Bangko Sentral ng