PDIC raises P162 million from selling closed banks’ assets

MANILA, Philippines — State-run Philippine Deposit Insurance Corp. (PDIC) earned some P162 million from disposing residential and commercial lots owned by closed banks in the first semester of the year.

In a statement, the PDIC said this was 4.5 percent higher than the P155 million sales in the same period last year. In January to June, the PDIC sold 151 corporate and closed bank assets as part of its asset disposal initiatives.

The total sales in the first half were higher by 14.1 percent from the sold properties’ aggregate minimum disposal price of P142 million.

The number of properties sold was also 21.8 percent more than the 124 properties sold in the same period a year ago.

The sold assets consisted of 141 residential, four agricultural and three commercial lots as well as three mixed residential and agricultural lots. Of the total, closed banks owned 101 while 50 were acquired assets of the PDIC.

PDIC said most of the properties are located in Bulacan (47 percent), Laguna (21 percent) and Metro Manila (11 percent).

As the designated receiver of banks ordered closed by the Bangko Sentral ng Pilipinas, the PDIC manages and liquidates the remaining assets of closed banks.Proceeds from asset disposals are added to the pool of funds from which the PDIC pays the claims of creditors and uninsured depositors of closed banks based on legal priority.

On the other hand, sale proceeds from the disposal of corporate assets are added to the Deposit Insurance Fund, the funding source for payments of deposit insurance.