PDIC to auction P115 million assets of closed banks

MANILA, Philippines — The Philippine Deposit Insurance Corp. (PDIC) will put up for sale P115 million worth of agricultural and residential lots owned by padlocked banks.

The PDIC will conduct on Aug. 23 a public electronic bidding of a total of 63 residential and agricultural lots across the country.

These include 56 agricultural lots, six of which have improvements, and seven mixed residential and agricultural lots, two of which have improvements.

Lot sizes of the properties are between 160 square meters and 95,255 sqm.

Rates for the properties start at a minimum disposal price of P31,171 to as much as P11 million.

The PDIC said the lots are located in Antique, Bataan, Batangas, Benguet, Cagayan, Camarines Sur, Cavite, Isabela, Lanao del Norte, Leyte, Negros Oriental, North Cotabato, Pangasinan, and Quezon.

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.