This was the joint opinion of Finance Undersecretary Cornelio Gison and Bangko Sentral ng Pilipinas (BSP) Deputy Governor Alberto V. Reyes.
In separate interviews, Gison pointed out that Tan cannot attach any conditionality to the infusion of an additional P10 billion, pointing out that Tan had already agreed to a memorandum of agreement (MOA) which set the terms and conditionalities for the infusion and rehabilitation of the Philippine National Bank.
Any change in the terms of the MOA, Gison said, would need to be cleared and approved by the Committee on Privatization (COP).
Gison also revealed that if Tan does not put in the P10 billion as agreed upon, government can still come in and infuse the P10 billion, which would place Tan in a minority position in PNB.
For his part, Reyes also expressed the same view, saying that the P10 billion must be put in without any conditionality.
Tan has the P10 billion ready but will not transfer the money to PNB until after the Monetary Board approves the new rehabilitation program for the bank.
Reyes said that under the terms of the MOA, the capital infusion should have been completed by Sept. 30. However, since Sept. 30 fell on a Saturday, the deadline would be the first working day or Oct. 2.
Tan’s camp had earlier announced that while the P10 billion fund is ready, the final sales report on the stock rights offering would only be known by today, Oct. 4.
Only then will Tan’s group know the exact amount of unsubscribed shares which he can pick up.
Government remains uncertain if Tan still intends to push through with the purchase of its 30.4 percent share in PNB which will be effectively diluted by the stock rights offering. – Marianne Go