PDIC gains P92 M from asset sale of closed banks

MANILA, Philippines – State-run Philippine Deposit Insurance Corp. (PDIC) raised P92.4 million from the sale of assets, particularly real estate properties of shuttered corporations and banks. 

The amount raised was P8.5 million higher than the minimum aggregate disposal price of P83.9 million for  corporate and closed banks’ assets auctioned early last month. 

The state-owned deposit insurer sold 10 contiguous residential vacant lots located in South Cotabato, a generator set, and five transport equipment for P16 million.

It raised another P76.4 million from the sale of four agricultural lots, a commercial lot, five residential lots with improvements, and a residential/agricultural lot located in Agusan del Sur, Albay, Batangas, Cavite, Laguna, Palawan, and Quirino. 

The regular conduct of asset disposal initiatives through public auctions and biddings is part of the PDIC’s strategy to expeditiously dispose non-financial assets.  

Proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payout of insured deposits.

On the other hand, proceeds from the sale of closed bank assets would be credited to the funds held in trust for the respective closed banks to increase the recovery of creditors and uninsured depositors and settle their claims.