Faria de Oliveira, president of the Portuguese Association of Banks, says the continuing impasse with Caixa Geral de Depósitos (CGD) directors refusing to hand in their income and asset statements to the Constitutional Court, “is very negative for Caixa and for the sector."
The APB president added that it is urgent to end this situation at Caixa and also expressed confidence that a solution for Novo Banco will be found by the end of the year.
Heavyweight banker Faria de Oliveira considers that all the noise generated by the new Caixa Geral directorate is "extremely negative", not only for the State-owned bank but for the sector as a whole and calls for a speedy resolution. Faria de Oliveira was discussing the issue in an interview today with Radio Renascença and Público.
CGD's new management team, headed by António Domingues, took office on 31 August and has refused to comply with disclosure rules governing State-owned businesses.
"All this noise about CGD is extremely negative. In addition to its recapitalisation programme, Caixa Geral needs stability and needs to be fully operational. This deafening noise is deeply negative. It's time to end it," said the APB president.
Asked whether CGD's new managers should deliver income and asset statements to the Constitutional Cout, Faria de Oliveira said that the judges will decide on what the law states, regardless of any private agreements that may have been made between the directors and the Finance Minister.
Another issue discussed in the interview was of sale of Novo Banco. Faria de Oliveira is confident that it will be possible to find a solution for the bank before the year end, or at least a decision that will lead to a positive outcome. His definition of ‘positive’ was not unwrapped as the bank is likely to be sold at a loss of around €4 billion and hardly can be classed as a equitable solution for the taxpayer and the Resolution Fund.
The president of APB also stressed the importance of a future owner being "a business that is as credible as possible, in order to strengthen the Portuguese banking system."
Apollo-Centerbridge, Lone Star and China’s Minsheng all presented binding offers for Novo Banco on Nov 4th.
Portuguese bank BCP informed Banco de Portugal that it remains available “to continue evaluating the dossier,” while BPI has withdrawn from the bidding and selection process.
The Board of Caixa Geral de Depósitos is meeting today and will discuss its members' position over these income and asset statements but no change is expected as the wait continues for the judges to make up their minds.
