PDIC raises P118M from closed banks’ assets

MANILA, Philippines - The Philippine Deposit Insurance Corp. has raised P118.01 million from its regular bidding of assets of foreclosed banks.

In a statement, the PDIC said the amount was accumulated during a public bidding of 186 properties last July 1. The PDIC said only 21 properties were sold, where 16 were owned by shuttered banks, while another five were corporate assets.

These properties were located in the cities of Caloocan, Paranaque, and Pasay; Calamba, Laguna; Tuguegarao, Cagayan; and in the provinces of Camarines Norte, Cavite, Cebu, Ilocos Norte, Pampanga, Pangasinan, Quezon, Rizal, Romblon, and Sorsogon, the state deposit insurer said.

“Proceeds from the sale of closed banks properties are automatically credited to the funds held in trust for the closed banks concerned and are used to settle claims of creditors and uninsured depositors,” the PDIC explained.

“In accordance with the law, payment to these parties is subject to the rules on concurrence and preference of credits,” the PDIC added.

But the sale of corporate assets are put into the Deposit Insurance Fund, which is the main source for the payment of deposit insurance claims.

The PDIC offers properties for sale through public biddings, negotiated sale, and housing fairs.

“The PDIC, as liquidator of closed banks, conducts public biddings in accordance with its strategic direction of expeditious disposal of non-financial assets,” the state deposit insurer said.