PDIC puts up for auction residential lots, motor vehicles

MANILA  -The government, though Philippine Deposit Insurance Corp. (PDIC), plans to raise a total of P50.1 million by putting on the auction block on May 12 various residential lots, motor vehicles and generator sets.

To be sold on an “as is where is” basis are 27 residential lots, 13 residential lots with improvements, 23 motor vehicles, eight generator sets, and three automated teller machines (ATM).

The residential lots are located in Laguna, Maguindanao, Nueva Ecija, Palawan, Pampanga, Pangasinan and Quezon.

These lots have areas ranging from 100 square meters to 1,120 square meters, and minimum disposal prices of P53,000 to P4.3 million.

The motor vehicles and generator sets are currently located in Metro Manila, Batangas, Bulacan, Cagayan, Cebu, Davao del Sur, Iloilo, Isabela, Laguna and Oriental Mindoro.

As the statutory receiver, the PDIC sells closed banks’ assets through public bidding and negotiated sales.

Proceeds from the liquidation of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to uninsured depositors and other creditors based on legal priority.

Further, the disposal of these assets increases the chances of recovery of uninsured depositors’ and creditors’ trapped funds in the closed banks.

Likewise, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, which is PDIC’s main fund source for payment of valid deposit insurance claims.

So far this year, the Monetary Board has issued closure orders to two rural banks.

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https://business.inquirer.net/359779/pdic-bidding-out-assets-of-shuttered-banks