PDIC sets auction of foreclosed assets

MANILA, Philippines - State-run Philippine Deposit Insurance Corp. (PDIC) is set to auction off several real properties and five vehicles worth P28.35 million in a public bidding scheduled on Dec. 19.

Up for bidding are 17 residential, seven condominium units, three commercial lots and five vehicles owned by closed banks under PDIC liquidation. The real properties are located in Batangas, Camarines Sur, Misamis Oriental, Rizal, Quezon, and Metro Manila.

The assets included a 600-square meter commercial lot or the premise of the closed Dynamic Bank or Rural Bank of Calatagan, Batangas Inc. worth P1.79 million followed by the 219-square meter commercial lot or the premise of the closed Rural Bank of Lagonoy in Camarines Sur worth P917,470 as well as several commercial spaces in the Isabelle Mansion in Paranaque City owned by Sandigan Savings Bank.

Also up for grabs is the 1,633-square meter residential lot in Taytay, Rizal worth P11.43 million owned by the defunct Rural Bank of Taytay (Rizal) Inc. as well as the 106.8-square meter residential lot worth P1.36 million owned by the closed Rural Bank of Pitago (Quezon) Inc. in Malate, Manila.

On the other hand, PDIC is also selling five foreclosed vehicles consisting of a Toyota Hiace van, a Hyundai Starex van, and three Hyundai Getz cars worth P1.86 million owned by the closed GMA Rural Bank of Cavite.

Before submitting their bids, prospective buyers are advised to physically inspect the properties, assess and verify the land titles and other related documents, and determine unpaid taxes, fees or expenses. All bids must be accompanied by a bond or deposit equivalent to at least 10 percent of the submitted bid.

PDIC earlier auctioned off P266.8 million worth of residential as well as mixed-use industrial and agriculural properties all over the country to beef up its buffer fund used to pay off the insurance claims of depositors of closed problematic banks.

PDIC said in a statement that it would sell acquired assets with estimated total value of P266.8 million consisting of 59 residential, eight mixed use and two industrial or agricultural properties last Oct. 25.

PDIC, as liquidator of closed banks, is tasked to dispose of the closed banks’ assets to settle claims of the closed banks’ creditors.

Earlier, PDIC executive vice president for recievership and liquidation sector Cristina Que-Orbeta said in an interview with reporters that the agency has enough buffer to service all the insurance claims of closed banks as its deposit insurance fund (DIF) currently stands at P67 billion.

The DIF is the funding source for deposit insurance claims payment.

Former President and now Pampanga Rep. Gloria Macapagal Arroyo signed Republic Act 9576 last 2009 doubling the maximum deposit insurance coverage (MDIC) for bank deposits to P500,000 to promote and safeguard the interests of the depositing public.

The amended Charter also granted PDIC powers to enhance its oversight on banks as well as mitigate the moral hazard posed by the increased coverage to the DIF and at the same time strengthened the agency’s regulatory oversight on banks through new authorities such as the conduct of special bank examinations, determination of products eligible for deposit insurance and examination of deposit accounts of ailing banks.