PDIC sells P21.3 M foreclosed assets

MANILA, Philippines – State-run Philippine Deposit Insurance Corp. (PDIC) raised P21.3 million from the sale of foreclosed assets of shuttered banks through a public bidding late last month.

The agency successfully sold 19 real and other properties acquired (ROPA) worth P20.8 million and two corporate assets with an aggregate value of P430,000.

PDIC said the bidding yielded a premium amounting to P5.9 million against the aggregate minimum disposal price of P15.4 million for all assets sold consisting of commercial and residential properties located in Metro Manila and the provinces of Batangas, Benguet, Bulacan, Cagayan, Cavite, Cebu, Isabela, La Union, Tacloban and Tarlac.

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

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

The expeditious liquidation and resolution of assets are strategic directions of PDIC, as statutory receiver of closed banks.

To help ensure that recoveries from closed banks’ assets are maximized, PDIC conducts various competitive asset disposal initiatives such as biddings and auctions as well as negotiated sale.

Last Aug. 25, PDIC raised P10 million from the sale 18 corporate assets with aggregate value of P4.2 million and nine closed banks’ assets with combined value of P5.7 million.

In the second quarter, PDIC raised close to P63 million from the sale of various properties in Caloocan City, Parañaque City and in the provinces of Bulacan, Cebu, Rizal, Ilocos Sur, Isabela, Laguna, Pangasinan, Tarlac, Nueva Ecija, Misamis Oriental, Benguet, Zambales.

The Bangko Sentral ng Pilipinas (BSP) has so far ordered the closure of 17 banks this year, exceeding the 14 banks shuttered by the bank regulator last year.

The BSP has ordered the closure of the Community Rural Bank of Dingras (Ilocos Norte) Inc.; Rural Bank of Luna (Isabela) Inc.; Rural Bank of Alabat (Quezon) Inc.; Rural Bank of Cabadbaran (Agusan) Inc.; Rural Bank of Siaton (Siaton, Negros Oriental) Inc.; New Rural Bank Of Binalbagan (Negros Occidental) Inc.; Comsavings Bank with trade name GSIS Family Bank; Rural Bank of Amadeo (Cavite) Inc.; and Surigao City Evergreen Rural Bank Inc.