Government to unload PNB stake 3 yrs after rehab

The National Government (NG) is planning to unload its shares in the Philippine National Bank (PNB) three years after the implementation of the bank’s rehabilitation program, Philippine Deposit Insurance Corp. (PDIC) president Norberto Nazareno told a Senate committee hearing yesterday.

"As soon as possible would be better, but we feel that the share price will be attractive once PNB management shapes up its financial position," Nazareno said.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Alberto Reyes informed the committee that PNB is losing P200 million a month due to interest payment alone for its P23.9 billion outstanding emergency loans from PDIC and the BSP.

According to Reyes, PNB incurred a net loss of P4.5 billion last year.

"The bank continues to be capital deficient. The finalization of the memorandum of agreement (between the Department of Finance and Lucio Tan) is for its (PNB) interest," Reyes said.

Meanwhile, Finance Secretary Jose Isidro Camacho gave his assurance that before he signs the MOA, he will take into consideration the issues raised in the ongoing Senate investigation regarding PNB’s reverse privatization.