December 29, 2017

The Philippine Deposit Insurance Corporation (PDIC) raises PHP34.5 million from the sale of corporate assets and closed banks' properties during its public bidding held last December 8, 2017 at the Bangko Sentral ng Pilipinas (BSP) - Cebu Regional Office.

The Philippine Deposit Insurance Corporation (PDIC) generated a total of PHP34.5 million from the sale of 18 corporate and closed banks' properties during its public bidding held on December 8, 2017 at the Bangko Sentral ng Pilipinas (BSP) - Cebu Regional Office corner Osmeña Blvd. and P. del Rosario St., Cebu City. The properties sold are located in Aklan, Antique, Bohol, Capiz, Cebu, Iloilo, Leyte, Negros Occidental, Negros Oriental and Surigao Del Sur.

Closed banks' assets sold comprised of residential, commercial, and agricultural lots, and transportation equipment. Four residential lots located in Aklan and owned by PDIC were likewise disposed of. The bidding yielded an aggregate premium of PHP14.8 million based on the combined minimum disposal price of PHP19.7 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. After which, unsold assets 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.

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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.