PDIC sells 559 properties of closed banks worth P277M

THE Philippine Deposit Insurance Corp. (PDIC) sold a total of 559 properties from January to December 2019 worth P277 million as part of its initiative to clean up the big volume of asset portfolio from closed banks under liquidation.

The number of properties sold is 46 percent more compared to the total 383 properties sold in 2018. Total sale represented 34.9 percent of the total disposal price of assets offered for sale in the public biddings amounting to P792.8 million. These also generated a premium of P69 million over the total minimum disposal price of P208 million for properties offered for sale.

The PDIC has pursued aggressive asset marketing through various on-ground and online channels to be able to dispose of assets under its care as receiver of closed banks.

Proceeds from asset disposal initiatives are added to the funds held in trust for closed banks to help increase the chances of closed bank creditors and uninsured depositors to recover their trapped funds.

Creditors’ claims are settled by the PDIC as liquidator, in accordance with the rules on concurrence and preference of credits.

The assets were disposed of via three regional public biddings held in Davao and Cebu City and 10 public biddings held in Manila in 2019. It consisted mostly of residential, commercial and industrial lots, some of which have improvements.

For 2019, sales also included a lahar lot, a commercial condominium unit and a number of motor vehicles.

“Part of the responsibility of PDIC as receiver of closed banks is to liquidate the banks’ assets to be able to settle claims of creditors and uninsured depositors as quickly and efficiently as possible, either through public biddings or negotiated sale. We continuously improve and innovate our services for the benefit of our customers and stakeholders. The conversion of non-cash portfolio is a major corporate initiative under our Strategy Map,” PDIC president and chief executive officer Roberto Tan said.

Unsold assets from public biddings may be acquired by interested parties via negotiated sale. (PR / SUNSTAR PHILIPPINES )