During a Congressional hearing on the issue, a DBP official said no law was broken following the sale of several loans under Lopez Holdings.
“These NPLs and NPAs were dealt with in the regular course of business and disposed of by DBP pursuant to Republic Act No. 9182, entitled The Special Purpose Vehicles Act of 2002, as amended by RA No. 9343 and other applicable laws, which authorized financial institutions, like DBP to transfer NPLs and NPAs to SPVs created under the Act,” Herbosa said.
A similar measure called FIST or the Financial Institutions Strategic Transfer bill is currently being pushed by the Department of Finance, as banks piled up bad loans due to the economic disruptions caused by the COVID-19 pandemic. Adiong added, “as soon as the accounts were transferred to the SPV DBP no longer had any transaction, at least with respect to those four loan accounts”.
During the hearing, Anakalusugan Rep. Mike Defensor questioned why DBP sold these NPLs with a 42 percent drop in value compared to the original loan amount.“The context of the law and the situation then was these were non-performing assets already, in the sense that they are non-performing already, you expect that loss would really be incurred,” Adiong said.
OK, back to square 1 kasi naihain nA naman Franchise Bill. 😋. Di PA ata pagoda mga tongressmen 😋
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