PDIC raises P35.8 M from sale of closed banks’ assets

MANILA, Philippines - The Philippine Deposit Insurance Corp. (PDIC) has raised P35.8 million from a recently concluded public bidding of assets owned by shuttered banks.

In a statement, the PDIC said five properties from closed banks and one corporate property were sold during the third bidding for the year. The collective bid offer summed up to P30 million plus a premium of P5.8 million, the state deposit insurer said.

The sold properties are located in the cities of Makati, Mandaluyong, and Taguig, and in the provinces of Isabela, Ilocos Sur, and Pangasinan.

During the said bidding, the PDIC auctioned off 91 real properties with a combined minimum disposal price of P46.73 million. Unsold properties will be offered for a negotiated sale, the state deposit insurer noted.

“The PDIC conducts regular public biddings in accordance with its strategic direction to expeditiously dispose non-financial assets. Creditors of closed banks benefit from these public biddings because the proceeds from the sale of closed banks’ assets are added to funds held in trust for the closed banks and are used to help settle claims of uninsured depositors and creditors,” the state deposit insurer said.

“Payment to these parties is subject to the rules on concurrence and preference of credits. Meanwhile, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, the PDIC’s funding source for deposit insurance payments and grant of financial assistance to banks,” it said.