PDIC: Exportbank's ordinary depositors won't get back bulk of their money

The uninsured depositors (or “ordinary creditors”) of the shuttered Export and Industry Bank should not expect to get back the bulk of their money, an official of the Philippine Deposit Insurance Corporation said Monday. PDIC executive vice president for receivership and liquidation Cristina Que Orbeta said that under the official liquidation and settlement procedures, “preferred” creditors—or those that extended loans to the bank—are prioritized over ordinary creditors in the settlement of claims. “Claims of preferred creditors will be settled first before claims of uninsured depositors. Based on estimates, there will still be some amount left for the uninsured depositors, but the amount is not significant,” she said. Exportbank was closed in April 2012 due to insolvency. Its assets are set for liquidation next month in accordance with a directive issued by the Monetary Board of the Bangko Sentral ng Pilipinas. Earlier this month the Bangko Sentral ng Pilipinas' policy-making body, the Monetary Board, directed the PDIC to proceed with the bank's liquidation after the failure of two bidding attempts for its rehabilitation. According to PDIC, the bank had a total of P11 billion in uninsured deposits covering 2,666 bank accounts, and that only a small portion of the amount is likely to be recovered. The PDIC earlier reported that the net realizable value of EIB’s recorded assets, estimated at P13.65 billion, “is deficient by P11.02 billion to cover its liabilities aggregating to P24.67 billion as of Dec. 31, 2012.” Even if PDIC were able to sell all of the bank’s assets at their estimated realizable values, said Orbeta, there would only be a small amount left for sharing among the uninsured depositors. — BM, GMA News