ssbet77 House OKs bill creating new DBP charter on 2nd reading

MANILA, Philippines — Proposals to create a new charter for the Development Bank of the Philippines (DBP) have been approved by the House of Representatives on second reading.

House Bill (HB) No. 11230 or the proposed New Development Bank of the Philippines Act—a consolidation of six bills—was approved during Monday’s session, through viva voce or voice voting.

If enacted, Executive Order No. 81 issued on December 3, 1986 or the 1986 Revised Charter of the Development Bank of the Philippines will be repealed.

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READ: BIZ BUZZ: Major revamp at DBP

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With the proposed measure, DBP will be tasked to support the programs of the government that are aimed at propelling economic growth and increasing, like the following sectors:

lkf 777 slot development of both digital and physical infrastructure expansion of businesses, especially micro, small, and medium enterprises (MSMEs) high-impact programs in education, health care, housing, other social services, and those that support the protection of the environment

Also, the capital stock of the DBP will be increased to P300 billion, subdivided into three billion shares, or a value of P100 per share. This will be an increase from the current P35 billion, as stated last March 2024 by DBP president and chief executive officer Michael de Jesus.

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Under the bill, the government will be required to always own at least 70 percent of the total outstanding capital of DBP.

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“The capital stock of the Bank shall be Three hundred billion pesos (P300,000,000,000.00) divided into three billion (3,000,000,000) shares, with a par value of One hundred pesos (P100.00) per share. The Board shall determine the classification of shares, their corresponding rights, privileges, or restrictions, if any,” the bill read.

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“Provided, that the National Government shall own, at all times, at least seventy percent (70 percent) of the total outstanding capital stock of the Bank,” it added.

Government-owned and controlled corporations or GOCCs are also allowed to place investments with the DBP.

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“The provisions of their respective charters to the contrary notwithstanding, all GOCCs, including government financial institutions, are authorized to invest in shares of stock of the Bank,” the bill stated.

Last March 7, 2024, de Jesus said they are working with the Department of Finance (DOF) and lawmakers towards reforming the DBP’s 26-year-old charter, so that they can “cater to the demands of an ever-changing market and rapidly-evolving economic landscape.”

“We are working hand-in-hand with all stakeholders especially the DOF in ensuring that DBP would be able to finance more developmental projects especially in the countryside,” de Jesus said in a statement posted on DBP’s website.

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“These amendments are needed to boost our financial position and make the Bank responsive to the evolving needs of our clients,” he added.

Based on the latest datassbet77, inflation eased to 1.9 percent in September, falling short of market forecasts and the Bangko Sentral ng Pilipinas’ (BSP) projected range of 2 to 2.8 percent for the month.

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