PCP insists on nationalization of Novo Banco to end management of “monopolistic interests” – Jornal Económico

The Communist Party (PCP) insists that the nationalization of the New Bank is the solution that would have best served the interests of the country and the Portuguese. The Communists accuse US fund Lone Star, which owns 75% of Novo Banco, of using the public guarantee granted by the current government to borrow money from the state, while creating conditions to profit from the sale of the bank.

"The sale of the Bank by the current Government in line with the demands of the European Commission led not only to the loss of an important instrument of economic and financial policy and its full devolution to the same management that made it collapse: private management," says the PCP, in a statement, adding that it is the Portuguese who continue to “pay the costs of a management policy at the service of monopolistic interests”.

The CFP also says that the losses of about 400 million euros in the first half of this year, which were revealed by the Securities Market Commission (CMVM) last Friday, show how “ruinous” the process of selling the as it continues to imply costs for “the Resolution Fund, read to the Portuguese State”.

“As usual, on the very day of the presentation of the accounts, the Bank's management immediately announced another request of 540 million euros to the Resolution Fund, read to the Portuguese State. Lone Star once again uses the public guarantee of 3.9 billion euros that the current government has granted to it, in a process of sale of the ruinous Bank to the country, ”he says.

Since BES Resolution in August 2014, over 7 billion euros have been delivered by the Portuguese State to Novo Banco. The Communists also note that Lone Star's new request for a bank capital increase comes, "just as the bank, which has already reduced the number of workers by more than 2,000" and is preparing to lay off another 400 workers.

"The state pays to clean up the troubled assets, pays the workers' layoffs and Lone Star creates the conditions to sell the bank and make a significant profit out of that sale," argues the party led by Jerónimo de Sousa.

The communists also say that privatization was "a bad option with costs that could exceed 10 billion euros" and advocate the nationalization of the New Bank. “The solution that would have best served the interests of the country and the Portuguese, as the PCP has defended and continues to defend, is the nationalization of the bank,” they emphasize.

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