State-run Philippine Deposit Insurance Corp. (PDIC) has raised a total of P118.01 million from the sale of commercial and residential lots owned by closed banks during a public bidding held on July 1, 2014 in Makati City.
In a statement on Friday, the state deposit insurer said the total amount raised for the 21 properties sold had a premium of P11.31 million compared to the properties’ aggregate minimum disposal price of P106.70 million.
Of the total properties sold, 16 were owned by closed banks while five were corporate assets, the PDIC said.
PDIC said a total of 186 properties were auctioned during the public bidding. The properties sold were located in the cities of Caloocan, Parañaque and Pasay; Calamba, Laguna; Tuguegarao, Cagayan; and in the provinces of Camarines Norte, Cavite, Cebu, Ilocos Norte, Pampanga, Pangasinan, Quezon, Rizal, Romblon and Sorsogon.
“Proceeds from the sale of closed banks’ properties are automatically credited to the funds held in trust for the closed banks concerned and are used to settle the claims of creditors and uninsured depositors,” the PDIC said in a statement.
“In accordance with the law, payment to these parties is subject to the rules on concurrence and preference of credits. Meanwhile, proceeds from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s main fund source for the payment of insured deposits,” it added.
The PDIC, as the liquidator of closed banks, conducts public biddings in accordance with the expeditious disposal of non-financial assets. Properties not sold during the bidding are available for negotiated sale or may be bidded out again.
PDIC is also encouraging interested buyers to visit the PDIC website at www.pdic.gov.ph and use the PDIC’s Property Finder for information on available inventory of assets for sale.
The state deposit insurer said public biddings aim to expeditiously dispose of non-financial assets, one of the strategic directions outlined in the PDIC’s Roadmap to 2016.