How much should the big debtors bank? PSD demands answers from Banco de Portugal – The Economic Journal


The PSD demands to know how much large debtors owe to the bank. To this end, they want the Assembly of the Republic to require the Bank of Portugal to deliver the report with the total amount owed.

Social Democrats will make this proposal at the conference of parliamentary leaders that will take place this Wednesday, May 29.

The Bank of Portugal (BdP) delivered an extraordinary report last week in Parliament that contains information about large debtors to the bank. On Tuesday, the supervisor publicly disclosed part of the report with data on the injection of public money into the bank, but did not disclose the aggregate data on the large debtors.

The report released on Tuesday details that the state has injected 24 billion in banking in the last 12 years, equivalent to 12% of Portuguese GDP. Of this total, it only recovered 5.3 billion, thus failing to recover about 80% of the aid to Caixa Geral de Depósitos (CGD), BES / Novo Banco, Banif, BPN, BCP and BPI.

"The PSD will propose that the Assembly of the Republic require the Bank of Portugal to prepare and immediately publish this report" containing the added value of large debtors, and separated by bank, said the PSD deputy, António Leitão Amaro.

In addition to the total amount owed to the bank, this report should contain the "value of guarantees, the value of pardons, the impact on capital, the amounts to realize what happened," explained the deputy to the Economic Journal.

António Leitão Amaro clarified that the PSD demands to make public the aggregate amounts owed, not in detail. "It's not name-by-name information, it's not the list of big debtors."

Later, deputies will examine the full report in detail to see what has happened in the banking industry by granting credits that are in default.

"Then what the deputies are going to do with the name-to-name list is to realize: this gentleman here has greater forgiveness than usual, and he also had forgiveness from another bank, and here he was granted other credits. To get to know the stories of these Berardos of life, the Ongoings, "he said.

He rejected the fact that the list of large debtors was made public, as there were cases of non-compliance which occurred in the normal course of business. "It makes no sense to be posting information regarding a debtor who had a problem with a credit that was well-granted, guaranteed, had more than 20% collateral, and had a business problem.

"It makes sense, yes, a maximum transparency in cases like Joe Berardo, which are things of favor. This is done within the committee and the Parliament, but it was important from the moment to realize the general picture, to see what happened in each bank, the big numbers, "he added.

The Social Democrat deputy criticizes the performance of the supervisor chaired by Carlos Costa. "Well, the Banco de Portugal made a completely odd interpretation. They simply decided to break the law, that does not fit. Not published [os valores agregados], this is a gross violation of the law. "

"Failed in its obligation to deliver information from the aggregate report, the law orders that it be published on the website of the Bank of Portugal, since May 23 that the law is being violated," criticized António Leitão Amaro.

At the end of Tuesday afternoon, the Bank of Portugal said that it did not divulge the names of the big bank creditors, in order to protect "the financing of the economy" and "financial stability", according to the supervisor, quoted by Agência Lusa .

Asked by the Economic Newspaper about the criticisms made by Deputy António Leitão Amaro and about the publication of the report with the values ​​added, Banco de Portugal did not respond until the closing of this edition.

State injected 24 billion into banking, but only recovered 20% of the aid



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