PDIC selling P66-M assets

MANILA, Philippines – State-run Philippine Deposit Insurance Corp. (PDIC) is raising P66 million from the sale of 133 assets acquired by the company and owned by closed banks nationwide.

PDIC’s Real and Other Properties Acquired (ROPA) Disposal committee is set to bid out the assets on an “as-is, where-is” basis on Oct. 25.

Up for bidding are 118 real properties located in Batangas, Benguet, Bulacan, Cagayan, Camarines Sur, Cavite, Cebu, Davao del Norte, Davao del Sur, Isabela, La Union, Leyte, Metro Manila, Nueva Ecija, Pangasinan, Rizal, Tarlac and Zamboanga del Sur.

The agency is also set to bid out 15 motor vehicles.

PDIC urged prospective buyers to physically inspect the properties, examine and verify the titles and other evidence of ownership, and determine any unpaid taxes, fees, charges and/or expenses before submitting their bids.

Each bid should be accompanied by a bond/deposit equivalent to at least 10 percent of the submitted bid, in cash or manager’s or cashier’s check, or a combination thereof. 

The winning bidder should pay the balance of the bid no later than Nov. 7.

PDIC, as liquidator of closed banks, conducts various asset disposal initiatives such as biddings, auctions and negotiated sale. 

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

The disposal of these assets increases the chances of recovery of uninsured deposits and creditors of their trapped funds. 

Meanwhile, gains 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 has taken over 16 banks ordered closed by the Bangko Sentral ng Pilipinas (BSP) so far this year as part of efforts to weed out weak players in the industry.