António Costa: Novo Banco’s claim “obviously exceeds the amount due” banking

Prime Minister António Costa said Saturday that Novo Banco’s call for capital from the resolution fund is “welcomed” but believes it “appears to be in excess of” what is expected to be due.

At the end of a visit to the Multiusos pavilion in Odivelas, where the vaccination of teachers and school staff takes place, António Costa was asked about the New Bank announcement he made this Friday, which he will ask for another 598.3 million euros to the resolution fund under the Contingent Capital Mechanism (MCC) to cover the reported losses of EUR 1,329.3 million in connection with 2020.

“It is a request that we as Treasury Department will appreciate yesterday [sexta-feira] I have already said it clearly goes beyond assessing needs and due needs, but this is a different film, ”just said the prime minister.

The transfer of 476 million euros to the resolution fund to finance Novo Banco, foreseen in the proposal of the state budget, has failed in parliament, but the government has already announced that it will honor the contract that was signed when Novo Banco was sold, the financial institution to Lone Star.

In a statement from the Treasury Department on Friday, the government said it was “fully convinced” that the final value of the resolution fund to be transferred to Novo Banco “will be lower than expected after review by the relevant authorities” the proposed OE2021, “it said an explanation.

The Treasury Department then says that “the government will be waiting for the information it has received from the Resolution Fund on the matter”.

The instructions also recalled that “in addition to the contractual mechanisms, the special audit for the payment of the resolution fund in 2020, provided for in Law No. 15/2019 of February 12, is foreseen, which should be completed soon” and requested ” all agents “to act with the utmost demands and care in order to preserve the stability of the financial system and the reputation of the republic and to minimize the impact on the public accounts”.

As of 2017, the resolution fund has put € 2,976 million in the bank, of which € 2,130 million came from government loans (since the fund does not have enough money, it asks the state for money every year, which it will repay in 30 years). .

In total, the costs of the resolution fund at Novo Banco to date already amounted to EUR 7,876 million (EUR 4,900 million of the initial capitalization in 2014 and EUR 2,976 million under the quota mechanism since 2017) and other fees when added to the additional costs can contribute funds or directly to the state, many of which are not quantifiable (compensation for legal proceedings, payments to BES creditors, guarantees for injured parties, etc.).

Back to top button