Urban Bank depositors start getting money back

The Export and Industry Bank (Exportbank) said it achieved a milestone in the rehabilitation of Urban Bank and Urbancorp Investments, Inc., when it started on Sept. 14 the payout of deposits and claims locked in Urban for about two years.

Exportbank president Benjamin P. Castillo said the payout of up to P500,000 per depositor was orderly due to the close cooperation of the National Association of Urban Depositors and Creditors and the Philippine Deposit Insurance Corp.

Payouts were also made in the provincial branches of Exportbank and Urban Bank in Baguio, Cebu, Iloilo, Bacolod, Davao and General Santos City.

The payout event also marked the first day of business of the new Exportbank branch at the Urban Plaza in Chino Roces Ave. corner Sen. Puyat Ave. in Makati City.

The funds of Urban creditors and depositors were trapped for about two years after Urban Bank declared a bank holiday.

Under the rehabilitation scheme, the balance of depositors and claims will be repaid over the next three years.

In addition to the payout, the rehabilitation program also called for a merger between Urban Bank and Exportbank.

Exportbank will soon open new branches in Greenhills, Alabang and Cebu.