Gov’t wants UCPB sale fast-tracked

Finance officials said on Friday that President Benigno Aquino III himself wanted the privatization of United Coconut Planters Bank (UCPB) fast-tracked, with plans to sell the bank by next year.

Only a legal hurdle is in the way of selling the government’s shares in UCPB, Commissioner Ephyro Luis B. Amatong of the Securities and Exchange Commission (SEC) told a press briefing.

“The main obstacle to implementing the Supreme Court decision on the coco levy fund, of which UCPB is a part, is the absence of an entry of judgment. We have already requested the Supreme Court to finalize it,” Amatong said.

The government has a 72-percent stake in UCPB.

Once the entry of judgment from the high court is obtained, the government can privatize UCPB in just “a couple of months,” Finance Secretary Cesar V. Purisima said.

“We have already hired financial advisers [for the potential sale of UCPB],” Purisima said.

The Finance chief disclosed that during an informal market sounding, there was interest not only among local but also foreign banks to buy UCPB.

“There is an interest because of the network of UCPB, the branches, the organization plus the goodwill around the country for a bank,” Purisima said.

Last Wednesday, President Aquino told a dialogue with farmers belonging to Kilus Magniniyog that the sale of UCPB was one of the options for the government to resolve issues on the coco levy fund.