Sen. Mark Villar. Photo by Senate PH

In a recent Senate debate on the proposed Maharlika Investment Fund (MIF), Senator Mark Villar addressed concerns about potential risks to government financial institutions and emphasized the potential high returns of investing in local infrastructure projects.

Responding to Senator Grace Poe's query during the plenary debates on Senate Bill No. (SBN) 2020 which aims to create the MIF, Villar sought to allay fears and instill confidence in the proposed sovereign fund.

Villar assured his fellow lawmakers that the MIF would only constitute a small portion, specifically three percent, of the investible funds of government banks. By doing so, he sought to alleviate concerns regarding the potential negative effects on the reputation of these financial institutions should the MIF face any setbacks.

While acknowledging the possibility of a worst-case scenario, Villar expressed his belief that any potential adverse impact would not be significant.

He further emphasized his faith in the returns that investing in local infrastructure and projects could bring, underscoring the importance of such investments for the country's development.

"In terms of the effect, we don't believe it would be that significant should the worst-case scenario happen, but of course, we do have faith that investing in our local infrastructure and local projects will yield high returns," said Villar, who also serves as the sponsor of SBN 2020.