Only 13 banks seek perks under SPV Act

Only 13 banks so far have sought eligibility for incentives under the Special Purpose Vehicle law, with transactions amounting to only a little over P6 billion so far approved by the Bangko Sentral ng Pilipinas (BSP).

The BSP reported that it has issued certificates of eligibility to four banks for dacion en pago and the sale of real and other properties owned or acquired (ROPOA) assets to individual buyers.

BSP Deputy Governor Alberto V. Reyes said the certificates would qualify the banks for tax incentives under the new law, including exemption from the capital gains tax.

Reyes told reporters that certificates of eligibility were pending for four other banks, pending their submission of documentary requirements to the BSP.

He said five more banks have applied for eligibility and awaiting processing.

Reyes said the dacion en pago amounted to P6.025 billion involving a total of 41 accounts of the four banks although he declined to identify which banks have been qualified for incentives.

On the other hand, the BSP also approved a total of P94.9-million worth of transactions involving the sale of ROPOA to individual buyers. These ROPOA assets, Reyes said, involved a total of 22 accounts.

"The approval process takes time because there are often problems in the submission of information on the buyers," Reyes explained. "But it is moving along."

Reyes also said two SPVs have been formed and registered with the Securities and Exchange Commission (SEC) as of August 1 this year, identified as the Assets Conversion Enhancement Strategies (ACES) and Colony Investors Inc.

Banks have been holding off their plans to transfer their NPAs under the new law pending the decision on whether the BSP would allow the staggered booking of losses arising from the discounted sale of non-performing assets, despite its deviation from international accounting standards.

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