Export Industry Bank settles 1st-year repayment notes

Export and Industry Bank (EIB) is prepared to accelerate settlement of the first year repayment notes under the three-year liability servicing plant (LSP) of the Urban Bank Inc. (UBI) and Urbancorp Investments Inc. (UII) rehabilitation program due on Sept. 13, 2002.

UBI/UII’s rehabilitation is well on track, according to the Philippine Deposit Insurance Corp. (PDIC).

EIB advised the PDIC that it is contemplating to discount at prevailing market rates, the second year repayment notes due on September 2003.

With liquid funds of around P3 billion,EIB expressed confidence that they will not have to draw on any committed capital funds and that there is no imperative to draw on the standby funds of PDIC.

Since the turnover of UBI to EIB on Aug. 8, 2001, it claims to have fully serviced the first P500,000 payments last Sept. 14, 2002 amounting to a total of P1.2 billion and $3.14 billion, for the peso and foreign currency claims, respectively. To date, EIB continuously services the six- percent quarterly interest due on obligations.

Last Jan. 31, Securities and Exchange Commission (SEC) approved the legal merger of UBI and UII with EIB. EIB will open six more former UBI branches on top of the four already reopened.