"BPI and the Bank of America shall now commence negotiations for the finalization of the relevant sale documentation," Carlos B. Aquino, BPI vice president and corporate secretary, said in a report to the Philippine Stock Exchange (PSE).
In the middle of 2006, the Ayala-led universal bank sold P6.3 billion worth of NPLs through a sale and purchase agreement with Avenue Asia.
It has so far sold a total of P17.3 billion in NPLs in wholesale transactions, averaging more than P2 billion in annual retail transactions over the past three years.
BPI president and chief executive officer Aurelio Montinola III said in an earlier interview that the bank realized good collections from outstanding loans as well as the continued disposal of its non-performing assets (NPAs).
Montinola, however, clarified that disposing of foreclosed properties this year will be tricky as property prices have appreciated to what was once offered for a 20-to 40-percent discounts last year could now be sold at appraised value, or much better than book value.
"We may have to hold on to some of our foreclosed properties," he added.