PDIC selling P37 M foreclosed assets

The properties with an aggregate minimum disposal price of P36.96 million consist of commercial and residential lots are located in Albay, Camarines Norte, Camarines Sur, Sorsogon, Marinduque, Occidental Mindoro, Oriental Mindoro and Palawan.

The public bidding was originally scheduled last Sept. 28.

PDIC said proceeds from the sale of closed banks’ properties are added to the pool of liquid assets of these banks for distribution to creditors and uninsured depositors in accordance with the rules on concurrence and preference of credits.

Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund (DIF) that grew 15.3 percent to an all-time high of P129.96 billion last year.

The DIF level in 2016 was equivalent to 5.8 percent of the estimated insured deposits (EID) on average monthly basis, better than the full-year target of 5.5 percent and the 5.6 percent cover in 2015.

At its current level as of year-end, the DIF is considered adequate to cover deposit insurance under normal circumstances and to address bank resolution based on banking conditions as of the end of 2016.

The expeditious liquidation of assets is one of the strategic directions of PDIC, as statutory liquidator of closed banks.

To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive biddings while unsold assets are sold to interested parties via negotiated sale.