PDIC speeds up BF depositors' payments

The Philippine Deposit Insurance Corporation (PDIC) is speeding up the payment of insurance claims of depositors of the closed Banco Filipino Savings and Mortgage Bank. PDIC officer-in-charge and executive vice president Imelda Singzon said the state-run insurer has already paid P86.2 million through postal money order to 75,330 Banco Filipino depositors with balances of P5,000 and below, with complete addresses, and without outstanding loans. For accounts with balances of up to P10,000 with complete addresses and without outstanding loans, validation and mailing of checks for validated accounts is ongoing. PDIC received almost 70,000 claims during the claims receiving operations from April 28 to May 13. Singzon said PDIC would keep on mailing payments as soon as these get validated during the examination of accounts. She added that the agency intends to conduct claims settlement operations for Banco Filipino from June 15 to August 19, 2011 or a month ahead of the target in 42 sites nationwide. “During the [claims settlement operations], depositors should proceed to the branches or designated CSO sites on their appointment dates based on the priority or reference numbers given to the depositors during the claims receiving operations (CSO)," she explained. She said the first batch of the CSO will cover 20 branches starting June 15 while the second batch covering 24 branches is scheduled on June 21. The third batch covering 18 branches is scheduled on July 15. The PDIC executive vice president reminded depositors to bring their claims status sheets issued during the claims receiving operations and original copy of the two (2) valid IDs submitted during the filing of the claim. BSP vs BF Last March 17, the BSP’s Monetary Board ordered the closure of Banco Filipino and placed it under PDIC receivership. Banco Filipino has 177,652 depositors whose accounts combined amount to P15 billion and 53 percent of whom have accounts with deposits below P5,000 each. Deposit accounts amounting to P500,000 are covered by insurance and would be paid by the PDIC. Last April 5, the BSP told the Court of Appeals that Banco Filipino should be shut down, claiming that the country’s largest savings bank was operating under a pyramid or “ponzi" scheme using new deposits to pay old deposits as bank officers and lawyers enriched themselves. In its website, Banco Filipino claimed that it was ordered closed by the Central Bank in 1985 due to alleged insolvency despite the savings bank’s outstanding performance. As early as 1966, Banco Filipino has become one of the biggest savings banks in the country with 92 branches prior to its closure. About 740 employees of Banco Filipino now stand to lose their jobs. Banco Filipino has been seeking P25 billion worth of financial assistance and regulatory reliefs as well as P19 billion as compensation for its alleged illegal closure of the bank in 1985. Banco Filipino is questioning the closure order before the Court of Appeals and reiterated that it has P30 billion worth of real estate assets which is more than enough to cover its deposit liabilities amounting to P15 billion. — MRT/VS, GMA News