559 closed banks’ properties sold through public biddings in 2019
The Philippine Deposit Insurance Corporation (PDIC) sold a total of 559 properties from January to December 2019 for an aggregate amount of PhP277 million as part of its initiative to clean up the big volume of asset portfolio from closed banks under liquidation.
The number of properties sold is 46% more compared to the total 383 properties sold in 2018. Total sale represented 34.9% of the total disposal price of assets offered for sale in the public biddings amounting to PhP792.8 million. These also generated a premium of PhP69 million over the aggregate minimum disposal price of PhP208 million for properties offered for sale.
The PDIC has pursued aggressive asset marketing through various on-ground and online channels to be able to dispose of assets under its care as receiver of closed banks. Proceeds from asset disposal initiatives are added to the funds held in trust for closed banks to help increase the chances of closed bank creditors and uninsured depositors to recover their trapped funds. Creditors’ claims are settled by PDIC as liquidator, in accordance with the rules on concurrence and preference of credits.
The assets were disposed of via three regional public biddings held in Davao and Cebu City and 10 public biddings held in Manila in 2019 and consisted mostly of residential, commercial, and industrial lots, some of which have improvements. For 2019, sales also included a lahar lot, a commercial condominium unit and a number of motor vehicles.
“Part of the responsibility of PDIC as Receiver of closed banks is to liquidate the banks’ assets to be able to settle claims of creditors and uninsured depositors as quickly and efficiently as possible, either through public biddings or negotiated sale. We continuously improve and innovate our services for the benefit of our customers and stakeholders. The conversion of non-cash portfolio is a major corporate initiative under our Strategy Map,” PDIC President and CEO Roberto B. Tan said.
Unsold assets from public biddings may be acquired by interested parties via negotiated sale. Interested buyers are encouraged to visit the PDIC Assets for Sale microsite at http://assetsforsale.pdic.gov.ph. for information on the inventory of available assets for disposal. The microsite may also be accessed via the PDIC website, www.pdic.gov.ph. They may also communicate with the PDIC Public Assistance Department at (02) 8841-4141 or at e-mail address email@example.com for more information. 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.
Corporate Communications Dept.