PDIC generates P330 million from liquidated assets in 2023

CEBU, Philippines — State-run Philippine Deposit Insurance Corporation (PDIC) successfully liquidated assets from corporate and closed bank portfolios, achieving an impressive total sales figure of P330 million in 2023.

Report from PDIC revealed that total sales value exceeded the aggregate minimum disposal price of P301.4 million by 9.5 percent or P28.6 million. This also represents a significant appreciation in the valuation of the disposed assets equivalent to 261.4 percent compared with the combined book value of these assets at P91.3 million.

Likewise, more real properties were sold in 2023 registering at 281, or an increase of 30 percent compared with the 216 properties disposed of in 2022.

The real properties sold were mainly situated in Central and South Luzon and South Cotabato consisting of 232 residential, 31 agricultural, 17 commercial lots, and a lot for mixed residential and agricultural use.

Closed bank-owned properties accounted for 235 while corporate/PDIC-acquired  properties totaled to 46. Two Makati Sports Club shares of the closed Export and Industry Bank were also successfully sold in September for P2.9 million, or a million more than the minimum disposal price of P1.9 million.

?Acting as statutory receiver to closed banks, PDIC liquidates assets owned by closed banks through public biddings and negotiated sale.

Proceeds from these asset disposal initiatives are added to the closed banks’ funds held in trust by PDIC for distribution to creditors including uninsured depositors in accordance with the Rules on Concurrence and Preference of Credits of the Civil Code of the Philippines.

The liquidation efforts of the statutory receiver enhance the likelihood of settling the claims of closed bank creditors and uninsured depositors.

On the other hand, proceeds from the disposal of corporate assets are channeled to the Deposit Insurance Fund to fund the settlement of deposit insurance claims of depositors.

To accelerate asset disposal, the PDIC shifted to electronic public bidding (e-bidding) of corporate and closed bank assets during the pandemic through its user-friendly portal, https://assetsforsale.pdic.gov.ph/, which provides a safe and convenient platform for interested buyers. Through a one-time registration in the e-bidding portal, buyers can access and bid for real and other properties from the extensive asset inventory of PDIC-owned and closed bank properties.

The conduct of public e-biddings continued to be adopted, hand in hand with in-person bidding, in step with the PDIC’s commitment to transparency, innovation and adaptability, and to reach a broader array of potential buyers while at the same time, streamlining the acquisition process.

Public bidding, in general, aims to maximize asset disposal revenues by generating competitive offers from bidders.