The Philippine Deposit Insurance Corp. (PDIC) said on Tuesday it generated P13.4 million from the sale of the assets of closed banks during a public bidding on November 16.
In a statement, PDIC said the amount raised was P4.1 million higher than the assets’ minimum disposal price of P9.3 million.
The state-run deposit insurer sold a vacant residential lot, three residential and two commercial lots with improvements, and a vacant agricultural lot in Camarines Sur province’s Goa town.
“Proceeds from the sale of the 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,” it said.
Meanwhile, gains from the sale of corporate assets are added to the Deposit Insurance Fund, PDIC’s fund source mainly for payment of valid deposit insurance claims, it added.
The expeditious liquidation of assets is one of the strategic directions of PDIC as statutory receiver and liquidator of closed banks.
To help ensure that recoveries from closed banks’ assets are maximized, PDIC sells assets via competitive biddings and auctions. Afterward, unsold assets may be acquired by interested parties via negotiated sale.