March 21, 2018

The Philippine Deposit Insurance Corporation (PDIC) generated a total of PHP67.6 million from the sale of 51 corporate and closed banks’ properties at its public biddings held last February 15 and 27, 2018 in Manila and Davao City, respectively. These biddings yielded a combined premium of PHP12.8 million against the aggregate minimum disposal price of PHP54.8 million.

On February 15, PDIC raised a total of PHP17.6 million from the sale of 18 properties resulting to an aggregate premium of PHP2.5 million against the combined minimum disposal price of PHP15.1 million. Sold assets are a fishpond in Malabon City, six transportation equipment and commercial and residential lots located in Metro Manila, Batangas, Bulacan, Cavite, Laguna, Misamis Occidental and Rizal.

Meanwhile, PDIC raised a total of PHP50.0 million from the sale of 33 properties of various closed banks at its public bidding last February 27, 2018 which consisted of commercial, residential and agricultural lots located in Agusan del Norte, Agusan del Sur, Bukidnon, Davao del Sur, Lanao del Norte, Misamis Oriental, North Cotabato, and Sultan Kudarat. Said bidding yielded an aggregate premium of PHP10.3 million against the combined minimum disposal price of PHP39.7 million.

Proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits. Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s fund source mainly for payment of valid deposit insurance claims.

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

Unsold assets from the public biddings may be acquired by interested parties via negotiated sale. Interested buyers are encouraged to visit the PDIC website at www.pdic.gov.ph and click the Assets for Disposal section for information on available inventory of assets for sale. Prospective buyers may also communicate with the PDIC Public Assistance Department at (02) 841-4630 to 31 or at e-mail address pad@pdic.gov.ph Those outside Metro Manila may call the PDIC toll-free hotline at 1-800-1-888-7342 or 1-800-1-888-PDIC. Inquiries may also be sent as private message at Facebook through www.facebook.com/OfficialPDIC.

* * * * *

The Philippine Deposit Insurance Corporation (PDIC) was established on June 22, 1963 by Republic Act 3591 to provide depositor protection and help maintain stability in the financial system by providing deposit insurance. Effective June 1, 2009, the maximum deposit insurance coverage is PHP500,000 per depositor. All deposit accounts by a depositor in a closed bank maintained in the same right and capacity shall be added together. A joint account shall be insured separately from any individually-owned deposit account.

PDIC news/press releases and other information are available at the website, www.pdic.gov.ph.