PDIC selling failed banks’ assets via public bidding at market-determined prices

This refers to the article titled “Yasay slams ways of banking officials.” (Inquirer, 3/5/12)

We wish to clarify that contrary to the statement of lawyer Perfecto Yasay Jr., the Philippine Deposit Insurance Corp. (PDIC), as the receiver and liquidator of closed banks, does not sell assets of failed banks at “ridiculous prices.”

PDIC follows policies, guidelines and procedures approved by its Board of Directors, and these are aligned with market practice. The paramount objective of PDIC in asset disposal is to maximize recovery for the benefit of all creditors. Under its Guidelines on Property Appraisal, the PDIC valuates assets consistent with international valuation standards and adopts valuation made by independent third party appraisers. The appraised values serve as the basis for the minimum disposal price.

The sale of assets of closed banks is done via public bidding to maximize proceeds. As in any bidding process, the public is invited to witness and participate not only for transparency but also to get the best possible market-determined price. Announcements and advisories on the public biddings are made as the law dictates, and these notices, which include the inventory of assets for sale and the terms and conditions for bidding, are published in newspapers.

Selective lists of assets for sale via public bidding are likewise posted in the bulletin boards of provincial capitols where these assets are located. The PDIC website, www.pdic.gov.ph, also contains these announcements and inventory of assets. The inventory may be accessed through a property finder system installed in the website.

I hope we were able to clarify our

position on this matter.

—MARIA LEONIDA FRES-FELIX,

vice president,

Corporate Affairs Group,

Philippine Deposit Insurance Corp. (PDIC),

6782 Ayala Ave. corner Rufino Street,

1226 Makati City