Closed banks’ assets up for sale

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) will put up for sale P137.5 million worth of commercial and residential lots owned by padlocked banks.

On July 26, the PDIC is set to hold a public electronic bidding, offering  59 residential and commercial lots nationwide. These include 56 residential lots, 32 of which have improvements, two commercial lots with improvements, and one mixed residential and commercial lot with improvements.

Lot sizes of the properties are between 105 square meters and 4,200 sqm.

Rates for the properties start at a minimum disposal price of P180,000 to as much as P21 million.

The lots are located in Metro Manila, Agusan del Norte, Antique, Bataan, Batangas, Benguet, Bulacan, Camarines Sur, Cavite, and Maguindanao.

The other lots can also be found in Negros Occidental, Negros Oriental, Nueva Ecija, Occidental Mindoro, Palawan, Pangasinan, Romblon, South Cotabato, Sultan Kudarat and Tarlac.

The properties are owned by closed banks under liquidation by PDIC.

As the mandated liquidator, the PDIC sells closed bank-owned assets through public biddings and negotiated sales.

Proceeds of such transactions are added to the pool of liquid assets of the banks for distribution to uninsured depositors and other creditors subject to the rules on concurrence and preference of credits.

The disposal of these assets increases the chances of recovery of uninsured depositors and creditors of their trapped funds in the closed banks.

Meanwhile, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for payment of valid deposit insurance claims.

PDIC reminded bidders of their responsibility to determine the actual condition, status, ownership, and other circumstances of the properties they want to acquire.