DOF sources said government is now re-thinking its position of a joint sale with Tan of its remaining 16-percent stake in PNB because it has become more and more difficult to attract investors as the bank continues to be saddled with huge losses.
The move to regain PNB, which sources said is most likely to be opposed by the World Bank and the International Monetary Fund, is one of the options being studied by the finance department to rehabilitate the ailing bank.
"The DOF is now studying the legal and financial implications of a re-nationalization of PNB," the sources said.
Aside from its financial condition PNB also has to deal with huge non-performing loans (NPL) which stood at 40 percent of total loans, or about P40.29 billion as of March this year.
PNB president Feliciano Miranda said earlier the bank expected a net loss of only P1 billion for 2000.
PNB’s eight-year rehabilitation plan has been approved in principle by the BSP but is being reviewed and subjected to another due diligence by investment banks ING Barings and PriceWaterhouseCoopers (PWC).
PWC has asked for more time to finish its due diligence report.
Another issue that has to be settled is how PNB’s P25-billion loan from the BSP and the Philippine Deposit Insurance Corp. (PDIC) will be treated and incorporated in the lender’s rehabilitation plan.
PNB borrowed P15 billion in emergency assistance from the BSP and another P10 billion from the PDIC late last year when it has hit by liquidity problems.