To further support the government in its fight against Coronavirus disease 2019 (COVID-19), the Bangko Sentral ng Pilipinas (BSP) will remit P20 billion as advance dividend to the National Government (NG). The advance dividends constitute 87% of the estimated total dividends based on the BSP’s unaudited financial statements for the year 2020.
Under its newly amended charter, the BSP is no longer mandated to remit its dividends to the NG. Section 2 of Republic Act (R.A.) No. 7653, as amended by R.A. 11211, provides that any and all declared dividends of the BSP in favor of the NG shall be released and disbursed immediately for the payment of the BSP’s increase in capitalization. Nevertheless, considering this extraordinary time, the Monetary Board has approved to defer the application of the BSP’s dividends for 2019 to the BSP’s capital and remit P20 billion advance/partial dividends to support the NG’s programs during this enhanced community quarantine due to COVID-19.
BSP will remit the P20 billion advance dividends today, 26 March 2020, through direct credit to the Treasurer of the Philippines-Treasurer Single Account, which is maintained with the BSP.
According to BSP Governor Benjamin E. Diokno, “We are one government. We are one Filipino nation. And we, at the BSP, shall support all efforts to fight this once-in-a-lifetime pandemic and keep the economy afloat. The BSP has and is ready to employ the necessary tools in its arsenal to address the impact of COVID-19 while staying true to its mandate.”
To date, the BSP has arranged for the purchase of government securities from the Bureau of Treasury (BTr) under a repurchase agreement in the amount of P300 billion, cut the reserve requirement ratio cut by 200 basis points and policy rate by 50 basis points, enabled continued access to banking institutions, and advocated that banks extend the greatest possible help they can to serve not just our economy, but also the Filipino people.