BDO still interested in Exportbank

MANILA, Philippines – Sy-led Banco de Oro (BDO) confirmed that it has submitted a proposal to the state deposit insurer to takeover the recently closed mid-sized Export and Industry Bank, or Exportbank.

In a disclosure to the stock exchange on Wednesday, May 9, BDO said it submitted “a proposal [to take over the assets and deposit liabilities of Export and Industry Bank] for consideration of the Philippine Deposit Insurance Corporation (PDIC).”

The Bangko Sentral ng Pilipinas placed Exportbank under the receivership of the PDIC receivership on April 27, a day after the bank owners declared a bank holiday.

The BSP said then that unable to “meet obligations as they become due because of insufficient realizable assets to meets its liabilities and inability to continue its business without involving probable losses to its depositors and creditors.”

The Inquirer had reported that BDO had changed its earlier proposal to take over Exportbank to prioritize the depositors.

The PDIC, which insures deposit accounts with P500,000 and below, covers only P4 billion out of the P14 billion total deposit liabilities of Exportbank, Inquirer reported.

BDO confirmed that it is ready to “move in immediately” as soon as PDIC approves its new proposal.

For around two years, BDO and Exportbank negotiated on a rescue package, but talks were halted due to a court case filed against Exportbank’s brokerage unit. – Rappler.com