P223M raised via PDIC assets sale to go to creditors of closed banks

Philippine Deposit Insurance Corp. (PDIC) raised almost a quarter of a billion pesos through the sale of assets in the first seven months of the year —funds which it would use to pay the depositors of shuttered banks, the agency said on Wednesday.

In a statement, PDIC said it made P223.1 million from the sale of properties of 533 closed banks in six public bidding this year.

“Collectively, the public bidding yielded an aggregate premium of P57.9 million over the total minimum disposal price of P165.2 million,” PDIC said.

In its most recent public bidding alone held last month at its Makati City head office, the sale proceeds amounted to P113.4 million involving the bulk sale of 438 residential lots owned by the closed Accord Savings Bank Inc. These residential lots are in Green Farm Royale Subdivision, Barangay Pulong Bunga, Silang, Cavite.

Proceeds from the sale of closed banks’ properties are added to the pool of funds of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.

The expeditious liquidation of assets is one of the strategic directions of the PDIC as liquidator of closed banks. To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive bidding.

The agency encouraged interested buyers to visit the PDIC website for information on the inventory of available assets for sale.

Unsold assets from public bidding may be acquired by interested parties via negotiated sale. Prospective buyers may communicate with the PDIC through its public assistance department.

Established in 1963 by Republic Act 3591, PDIC provides depositor protection and helps maintain stability in the financial system by providing deposit insurance. Since 2009, the maximum deposit insurance coverage has stood at P500,000 per depositor.