Another auction set for closed banks’ assets   

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) will put up P48.9 million worth of residential and commercial lots owned by padlocked banks for sale.

An electronic bidding for 42 properties in Luzon and Mindanao will be conducted on April 13.

These include 40 residential lots, 18 of which have improvements, one commercial lot, and another one with improvement.

Lot sizes of the properties are between 50 square meters and 2,824 sqm.

Rates for the properties start at a minimum disposal price of P70,000 to as much as P3.4 million.

According to the PDIC, the lots are located in Metro Manila, Bataan, Benguet, Bulacan, Cavite, Maguindanao del Norte, Marinduque, Nueva Ecija, Pangasinan, Quezon, and Sorsogon.

The 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.