PDIC raises P68 million from asset sale

MANILA, Philippines — Government-run Philippine Deposit Insurance Corp. (PDIC) has raised close to P68 million last February from the sale of foreclosed assets of shuttered banks.

The state-owned deposit insurer disposed 51 corporate and closed banks’ properties at its public biddings held last Feb. 15 and 27 in Manila and Davao City, respectively.

“These biddings yielded a combined premium of P12.8 million against the aggregate minimum disposal price of P54.8 million,” PDIC said.

The Manila auction yielded P17.6 million from the sale of 18 properties including a fishpond in Malabon City, six transportation equipment as well as commercial and residential lots located in Metro Manila, Batangas, Bulacan, Cavite, Laguna, Misamis Occidental and Rizal.

Meanwhile, the bidding in Davao City raised P50 million from the sale of 33 properties of various closed banks consisting of commercial, residential and agricultural lots located in Agusan del Norte, Agusan del Sur, Bukidnon, Davao del Sur, Lanao del Norte, Misamis Oriental, North Cotabato and Sultan Kudarat.

Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.

Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s fund source mainly for payment of valid deposit insurance claims.

The expeditious liquidation of assets is one of the strategic directions of PDIC as statutory receiver and liquidator of closed banks.

To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive biddings and auctions.

 Interested parties could acquire unsold assets from the public biddings via negotiated sale.

The Bangko Sentral ng Pilipinas (BSP) has so far ordered the closure of two problematic banks as it continues to weed out the industry of weak players. The BSP has placed Empire Rural bank Inc. and Rural Bank of Loreto (Surigao del Norte) Inc. under the supervision of the PDIC.