The Department of Finance (DOF) clarified that the P107-billion remittance from the Philippine Deposit Insurance Corporation (PDIC) to the national government consists of unrestricted funds, meaning they can be allocated for other purposes without affecting the PDIC’s reserve funds.
These funds, which include cash and investment balances, are net of restricted amounts, according to the DOF statement.
The PDIC’s Deposit Insurance Fund (DIF), which remains intact, is worth P250 billion and is specifically set aside for deposit insurance payouts and emergency financial assistance to banks.
Finance Secretary Ralph Recto reassured the public that the PDIC’s DIF exceeds international standards, with the current balance well above the required level.
Recto also noted that the DIF, which covers about 5.5 percent of the country’s insured deposits, is fully sufficient to address risks in the banking sector.
The DOF emphasized that the remittance would not affect the PDIC’s ability to perform its duties, including responding to insurance claims.
As of November 2024, the PDIC had only paid out P282.31 million in deposit insurance claims, and it continues to allocate P3 billion monthly to maintain and grow the DIF.
The remitted funds have contributed significantly to major government projects, including infrastructure, social programs, and disaster-related efforts.
These include improvements to vital infrastructure, support for families in crisis, and financing for foreign-assisted projects like the Metro Manila Subway and various rural electrification initiatives.
Recto pointed out that the government’s focus on obtaining dividends from performing government-owned and controlled corporations (GOCCs) is preferable to raising taxes or borrowing more funds.