National Treasurer Rosalia de Leon attends a Senate panel hearing on the Maharlika Investment Fund bills on Wednesday, February 1, 2023.
MANILA, Philippines —The country’s national treasurer sees the Maharlika Investment Fund as a possible means to either minimize the country’s debt or draw in foreign investment.
At a meeting of the Senate committee on banks, financial institutions, and currencies on Wednesday, Senator Mark Villar wondered whether or not the proposed fund would contribute to the country’s financial stability.
“This bill, in a way, can improve our fiscal situation in the country as it could potentially reduce the debt… of the Philippine government?” inquired Villar, panel chairperson.
National Treasurer Rosalia De Leon replied, “Tama po (Correct)… Instead of the national government borrowing for these infrastructure projects, there can already be some take up by the fund, or some other private ventures would also be co-investing in the fund to implement and execute these projects.”
“Otherwise, dapat po (it should be the) national government ang mag-i-implement (that will implement it),” she added.
Villar likewise quizzed if the Maharlika Investment Fund can attract foreign equity, to which de Leon affirmed.
“Definitely. Just to cite an example, maybe there’s a correlation. Recently, when we issued our last sovereign bond, we were able to have an order book of $28 billion for issuance of $2 billion. So, that means that there’s a lot of interest in the Philippines,” de Leon answered.
The committee of Villar, who filed the Senate version of the Maharlika Investment Fund, began its scrutiny of the controversial fund.
The panel is also looking into the House of Representatives’ version of the measure, House Bill No. 6608, which was approved in the lower chamber in December last year.