PDIC sets auction of P320 million assets

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) is disposing P320 million worth of foreclosed assets including residential, commercial, and even memorial lots in the next two months.

PDIC’s asset management and disposal group is scheduled to bid out 3,326 closed banks’ and corporate assets worth P117.2 million at the Bangko Sentral ng Pilipinas - Cagayan De Oro branch.

Up for grabs are 3,307 memorial lots located at Ma. Christina Gardens, Brgy. Sta. Filomena, Iligan City, Lanao del Norte and at Cagayan de Oro Gardens, Lumbia District, Cagayan de Oro City, Misamis Oriental worth P105.8 million.

PDIC is also disposing nine residential lots, five residential lots with improvement, two industrial lots, one commercial lot with improvement, and two motor vehicles located in Agusan del Norte, Bukidnon and Surigao del Norte.

The state deposit insurer is also scheduled to auction 749 residential lots as well as 19 residential lots with improvements located in Metro Manila, Bataan, Bulacan, Cavite, Marinduque, Nueva Ecija, and Tarlac owned by the shuttered thrift banking arm of Government Service Insurance System (GSIS) on Oct. 4.

The BSP’s Monetary Board ordered the closure of GSIS Family Bank and placed it under the supervision of the PDIC in 2016 after the state-run pension fund manager failed to privatize its stake in the thrift bank due to legal hurdles.

On Oct. 17, PDIC will unload 270 residential lots worth P18.6 million located in Greenville Subdivision in Tiaong, Quezon. The lots with an estimated total area of 37.138 square meters used to be owned by the closed WinBank Inc.

PDIC, as liquidator of closed banks, holds various asset disposal initiatives such as biddings, auctions and negotiated sale. It raised P22 million from the sale of 16 properties from June to August.

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.

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

The BSP’s Monetary Board has so far ordered the closure of 11 problematic banks this year as part of efforts to weed the industry of weak players.

These include Rural Bank of Maigo (Lanao del Norte), Rural Bank of Luna (Apayao), Malasiqui Progressive Savings And Loan Bank, Rural Bank of Pagbilao, Rural Bank Of Sta. Elena (Camarines Norte), Tiaong Rural Bank, Bangko Buena Consolidated, Women’s Rural Bank, Rural Bank of Initao (Misamis Oriental), Empire Rural Bank and Rural Bank of Loreto (Surigao del Norte).