ADB country director for the Philippines Tom Crouch said the multilateral agency is interested to invest either through equity partnership or loan releases.
"We are allowed by our regulations to make investments of $25 million or 25 percent of the total project cost in a private sector activity," Crouch said.
This simply mean that a private sector firm, planning to establish an AMC to participate in the acquisition of bad assets of commercial banks, could approach the ADB for a loan or tap the multilateral agency as an equity partner.
Crouch stressed the formation of an AMC should proceed. "It is new to the country and the first try should be successful," he said.
The Bank of the Philippine Islands (BPI) had been approached by a group which want to form an AMC to acquire some of the bank’s bad assets. But the group, despite getting a financial backing from the International Finance Corp. (IFC), failed to push through with the project.