Letter to the Editor

March 21, 2012

Ms. LETTY JIMENEZ-MAGSANOC
Editor-in-Chief, Philippine Daily Inquirer, Inc.
Chino Roces Avenue corner Yague
and Mascardo Streets, Makati City

Dear Ms. Jimenez-Magsanoc:

This refers to the article, “Yasay slams ways of banking officials”, which was published on March 5, 2012, in your newspaper.

We wish to clarify that contrary to the statement of Atty. Perfecto Yasay, Jr., the Philippine Deposit Insurance Corporation (PDIC), as the Receiver and Liquidator of closed banks, does not sell assets of failed banks at “ridiculous prices”.

PDIC follows policies, guidelines and procedures approved by its Board of Directors, which are aligned with market practice. The paramount objective of PDIC in asset disposal is to maximize recovery for the benefit of all creditors. Under its Guidelines on Property Appraisal which consider valuation of assets consistent with international valuation standards, the PDIC adopts valuation made by independent third party appraisers. The appraised values serve as the basis for the minimum disposal price.

The sale of assets of closed banks is done via public bidding to maximize the proceeds from the sale. As in any bidding process, the public is invited to witness and participate not only for transparency but in order to get the best possible market determined price. Announcements and advisories on public bidding of assets containing inventory of assets for sale and the terms and conditions for bidding are published in newspapers. Selective lists of assets for sale via public bidding are likewise being posted in the bulletin boards of Provincial Capitols where these assets are located. The PDIC website, www.pdic.gov.ph, also contains these announcements and inventory of assets. The inventory may be accessed through a property finder system installed in the website.

I hope we were able to clarify our position on this matter. We request that in the spirit of fairness, this letter be printed in its entirety.

Thank you.

Very truly yours,

cc: Mr. Marlon Ramos
Phil. Daily Inquirer