Equitable drops plan to restructure BSP loan

Determined to keep Bangko Sentral intervention to the minimum, Equitable PCI Bank has scrapped plans to restructure the balance of the P30-billion emergency loan received from the central monetary authority. Instead, the bank will push for a complete paydown plan for the loan.

"If they try to ask us for a restructuring of the loan, they will have to meet certain conditions that we will impose," said Bangko Sentral Governor Rafael Buenaventura. "If they pay us down, we don’t care whom they choose to keep on the board. We cannot interfere."

Buenaventura said the bank has three months to firm up its paydown plan for the balance P10 billion of the loan as well as to submit the names of its 15-man board elected during the April 16 annual stockholders meeting.

Earlier, Equitable PCI Bank toyed with the idea of asking the Bangko Sentral to extend the maturity of the three-month emergency loan to five years. The Bangko Sentral was amenable to the loan restructuring, subject to three major conditions: the infusion of P10 billion in additional capital, a say in who succeeds resigned Wilfrido Vergara as bank president, and a board at peace with itself.

Earlier, board director and Government Service Insurance System president Winston Garcia raised objections to the pension fund putting in its share of the P10-billion new capital and to the election of directors who represent the bank’s minority stockholders.

Traditionally, minority stockholders, who control three board seats, have given their proxies to the Go family, who control five board seats. These proxies have enable the Go family to control a majority of the board, holding eight of the 15 board seats. – Rocel Felix