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BSP will remit P9.9B in dividends to natl govt


The Bangko Sentral ng Pilipinas (BSP) would remit about P9.8 billion worth of dividends to the national government this year, up by 46 percent from last year's P6.7 billion, the central bank said in a statement over the weekend. The amount is the second largest after the P10.1 billion in dividends the central bank declared in 1997, according to BSP Gov. Amando Tetangco Jr. Under the Republic Act 7658 or the dividends law, government-owned and -controlled corporations or GOCCs and government financial institutions or GFIs are required to remit 50 percent of net income to the national government. However, RA 7553 or the New Central Bank Law of 1993 required the BSP to declare 75 percent of its net earnings as dividends in favor of the national government. BSP's net income reached about P13 billion last year or about 45 percent higher than the P8.93 billion it earned in 2008. Last year, the central bank remitted about P6 billion to the national coffers and another P696.33 million in the first half of the year to complete its dividend payments for its earnings in 2008. From its net income last year, the BSP remitted P4.475 billion as well as P450 million in property dividends to the national government during its 17th anniversary celebration. Tetangco said the BSP would remit another P4 billion in the next few months after the Commission on Audit completes of its review of the central bank’s 2009 financial statements. He said the central bank has declared P59.5 billion worth of dividends in favor of the national government since it was created in 1993 and paid more than P50 billion in taxes over the past 11 years. BSP continued to remit dividends despite the failure of the national government to complete its P50 billion capital infusion to the BSP. RA 7553 set the capitalization of the central bank at P50 billion but the national government only paid P10 billion of what was mandated by law. The balance of P40 billion was supposed to be paid two years after the effectivity of the law that was passed in 1993. "We will continue to pursue that," Tetangco said, referring to the P40 billion obligation of the national government. —With Jesse Edep/VS, GMANews.TV

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