Portuguese Commercial Bank (Millennium BCP) has repaid €400 million of public money, around 13.3% of the total €3 billion that the bank received to stop it closing in 2012.
The CEO, Nuno Amado, says the bank will keep repayments coming, in line with an agreed plan which predicted that repayments would begin this year.
"This reimbursement is a proof of the vitality of Millennium BCP in meeting the first stage of the repayment plan," said Amado who emphasised that "our plan always predicted that repayment would begin this year."
When he had finished congratulating himself, analysts noted that the repayment plan does not include any increase in capital from private shareholders, although there are suggestions that BCP could safely resort to issuing new shares to accelerate the repayment plan.
Société Générale reckons BCP could raise €1.5 billion, an amount that "would make sense."
Amado adds that today's repayment leaves BCP "well above the regulatory minimum required for capital ratios."
The repayment will save the bank €35 million in annual interest as the rate charged by the treasury was a stiff 8.75%, rising to 9% from next month on the balance.
See also: http://www.algarvedailynews.com/news/2425-millennium-bcp-at-last-cuts-wages-in-bid-for-solvency
