State bank status: Dominguez lauds conversion of UCPB capital to preferred shares

Coconut farmers and workers will benefit from the conversion of United Coconut Planters Bank’s (UCPB) P12-billion capital notes to preferred shares, Finance Secretary Carlos Dominguez III said.

In a Viber message to journalists Friday, Dominguez said the Philippine Deposit Insurance Corporation’s (PDIC) move to convert “the capital note it held to more permanent special preferred shares in UCPB is totally in line with the above objective”.

“We expect the Board of UCPB to consider re-orienting their focus on serving the farmers and processors of coconut and other vegetable oil products, but balancing their portfolio with exposure to other industries and clients in the middle market,” he added.

UCPB is among the government-owned banks, along with the Land Bank of the Philippines (Landbank), Development Bank of the Philippines (DBP) and the Overseas Filipino Bank (OFBank).

The Supreme Court (SC) has ruled UCPB as state-owned because it was acquired by cronies of former President Ferdinand Marcos using government funds.

The Department of Finance (DOF) on Friday said the government hiked its shares on UCPB from 75 percent to 97 percent through the conversion of the capital notes.

Dominguez said the remaining three percent of the shares are owned by “various private sector individuals and entities”. (PNA)

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