PDIC to study rehab proposal for Export Bank

By Carlo P. Mallo

The government owned and controlled Philippine Deposit Insurance Corporation (PDIC) will study the proposal of the Sy-led Banco de Oro for the next 90 days to determine whether such will be most advantageous to the depositors and creditors of Export Bank.
After Export Bank was placed under its receivership in April, PDIC has 90 days to determine the rehabilitation proposal.
PDIC intends to come up with a terms of reference for all interested parties to consider as well as engage the services of a financial auditor to help PDIC determine the valuation of Export & Industry Bank (EIB). These will be submitted to the PDIC Board and the Monetary Board that will ultimately approve the rehabilitation proposal.
BDO has submitted a proposal to rehabilitate EIB with certain conditions. PDIC is reviewing the legal and economic viabilities of said proposal. Some of the conditions as proposed are not within the authority of PDIC.
The PDIC’s immediate concern now is to take stock of the deposit liabilities of EIB and conduct payout for all valid insured deposits as soon as possible. Payment for accounts with balances of P10,000 and below will start by the end of the month. Holders of these accounts who have no outstanding loans and who have updated their addresses in the bank in the past year, need not file deposit insurance claims.