UCPB looks forward to implementing privatization and recapitalization

United Coconut Planters Bank (UCPB) said its planned privatization and recapitalization program will further strengthen their operations and make it more competitive against other big commercial banks.

UCPB released a statement yesterday to assure its clients and investors that the bank will continue to function as a financial institution while it is putting its house in order. The statement also follows pronouncements by Finance Secretary Carlos G. Dominguez III that his department will pursue plans to divest of government shares in the bank.

“As announced by DOF (Department of Finance) Secretary Dominguez, the government will soon resume the bank’s privatization through a recapitalization program and sale of the government’s majority stake in UCPB. This will definitely redound to the benefit of UCPB and its clients as this will strengthen the bank’s capital and generate more resources to improve its competitive position in the market,” according to the bank.

“We will be coordinating closely with the DOF for their next steps, and will provide updates to all our stakeholders as we do so,” it added.

UCPB also stated that they will remain in operation while in the process of a capitalization program. “We would like to assure our clients that it is business as usual for the bank while we go through each phase of this muchawaited recapitalization program, and that they can look forward to a better and stronger UCPB.” The bank also said that it welcomes the lifting of the Supreme Court’s temporary restraining order on Executive Orders 179 and 180 involving the R75-billion coco levy funds and UCPB’s privatization.

The bank’s privatization was postponed when the TRO was released in mid-2015. EO 179 detailed the coco levy fund management while EO 180 covered the privatization and disposition of these assets.

UCBP has previously confirmed that it is receiving a lot of investor interests from both local and foreign sources, but since it was still finalizing its recapitalization program, interested parties would have to wait awhile.

Government-controlled UCPB has been planning the strategy of its privatization for a long time. It had a 10-year rehabilitation program which started in 2008 and will end by December 31 next year. (LCC)