PDIC fails to sell shuttered Export and Industry Bank

The government on Tuesday said it failed to attract investors who are willing to buy the assets and liabilities of shuttered Export and Industry Bank since no one actually came to submit a letter of interest in becoming a strategic partner to rehabilitate the bank.

 

State-run Philippine Deposit Insurance Corp. (PDIC) declared its latest effort to turn around the condition of the bank a failure. The deadline for submitting the letter of interest to bid for the bank was Monday, March 18. 

 

The March 20 submission of bids is no longer pushing through, PDIC general counsel Romeo Mendoza Jr., who also chairs the bidding committee, noted in a statement. 

 

"Under Section XI of the Terms and Conditions for the Re-bidding and Re-bidding Procedures on the Rehabilitation of the closed EIB, non-receipt of letter of interest or pre-bid documentary requirements is a ground for the declaration of failure of bidding," the statement read.

 

"With this development, the task at hand is for PDIC to make a final determination on whether EIB may be rehabilitated, then submit its report to the Monetary Board," said Mendoza.

 

As the bank could no longer meet its liabilities then estimated between P700 million and P800 million, Bangko Sentral ng Pilipinas declared the bank as insolvent and closed and placed it under receivership of PDIC on April 27, 2012. — VS, GMA News