PDIC sets auction of closed banks’ lots

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) will put up for sale P95.6 million worth of 86 residential and agricultural lots owned by padlocked banks.

The PDIC will conduct on March 31 a public bidding to auction 86 properties in Visayas and Mindanao.

These include 35 residential lots with improvements, 29 vacant residential lots, 13 vacant agricultural lots, and nine agricultural lots with improvements, four of which will be sold as one.

Lot sizes of the properties are between 94 square meters and 50,462 sqm.

Rates for the properties start at a minimum disposal price of P24,320 to as much as P9.4 million.

The lots are located in Antique, Cebu, Davao de Oro, Davao del Norte, Davao Oriental, Davao del Sur, Iloilo, Lanao del Norte, Maguindanao, Misamis Oriental, Negros Oriental, South Cotabato and Sultan Kudarat.

These properties are owned by closed banks under liquidation by PDIC.

As the mandated liquidator, the PDIC sells closed bank-owned assets through public biddings and negotiated sales.

Proceeds of such transactions are added to the pool of liquid assets of the banks for distribution to uninsured depositors and other creditors subject to the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds in the closed banks.

Meanwhile, proceeds from the sale of corporate assets are added to the deposit insurance fund, PDIC’s main fund source for payment of valid deposit insurance claims.

PDIC reminded bidders of their responsibility to determine the actual condition, status, ownership, and other circumstances of the properties they want to acquire.