PDIC bidding out assets of closed banks

State deposit insurer Philippine Deposit Insurance Corp. (PDIC) is unloading foreclosed assets of closed banks.

In a statement, PDIC said that more than a hundred parcels of land and other types of assets would be auctioned off this week.

Properties to be auctioned off include seven bank premises and 123 agricultural and residential lots, of which 33 are with improvements.

These are located in the provinces of Albay, Batangas, Cavite, Camarines Norte, Camarines Sur, Cebu, Eastern Samar, Leyte, Marinduque, Negros Oriental, Occidental Mindoro, Oriental Mindoro, Palawan, Quezon and Rizal.

Based on their floor prices, the 130 assets are worth P64.3 million. The auction for these assets will be held at the PDIC’s Makati office on Tuesday.

Proceeds from the disposal of closed banks’ assets are held in trust for the concerned banks. As liquidator of closed banks, PDIC is mandated to dispose of and resolve the assets of closed banks for conversion to cash to settle claims of creditors and bank clients with uninsured deposits.

Money made from the disposal of corporate assets are added to the Deposit Insurance Fund (DIF), the funding source for payment of deposit insurance claims. All deposits in banks are insured up to P500,000.

Amounts not covered by this mandatory insurance are paid using the proceeds of the sale of assets of closed banks.

The expeditious disposal of non-financial assets is among the strategic directions outlined in the PDIC’s roadmap to protect the depositing public and promote financial stability. Paolo G. Montecillo