The government expanded its majority stake in the United Coconut Planters Bank (UCPB) from 75 percent to 97 percent with the conversion of the P12 billion in capital notes that UCPB had issued to the Philippine Deposit Insurance Corporation (PDIC) into special preferred shares, according to Finance Secretary Carlos Dominguez III.

 Dominguez, who is also PDIC chairman, said the increase of the state’s majority shareholdings in UCPB reaffirms the government’s commitment to support the bank.

UCPB obtained financial assistance from the PDIC as part of its recapitalization program, which included P12 billion in capital notes, PDIC President Roberto Tan said.

“The capital notes are convertible to special preferred shares and the PDIC has exercised this option, effectively increasing the government’s shareholdings in UCPB to 97 percent,” Tan said.

Tan added that aside from PDIC’s infusion of financial assistance into UCPB, the Bureau of the Treasury (BTr) also had extended another P30 billion deposit to provide income support to the bank.

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