fact that triggers the resolution communication Government on 19 December, it was not possible to sell the institution “, said yesterday the governor of the Bank of Portugal (BoP), Carlos Costa, before the members of the Budget Committee , Finance and Administrative Modernization. The governor, who forwarded the Banif outcome of responsibilities for António Costa has been giving his point of view to Members, a kind of antechamber that will be the Parliamentary Committee of Inquiry into Banif. Without making an initial statement, Carlos Costa explained that “it was reported” that Banif purchasers would have to have banking license and a size three times the Banif in the domestic market, and five times the size in general.
So, he said, only two Spanish banks, Popular and Santander, fulfilled the requirements, and the People gave up halfway. The governor did not mention, however, that the BPI has the same size of Santander and has no public aid.
bop refused payment of 125 million Banif
Costa also said that the BOP was not involved in the voluntary Banif sale process, a topic the Ministry of Finance, which is why “does not even know the proposals” purchase delivered on 19 December, and only called Santander and Popular when It was told that there was no sale. After some questions of John Paul Correia, PS, Carlos Costa referred to the economic environment and the bank’s management problems that have come to register. “Banif has not been ignored, on the contrary, has been subject to increased supervision. It will be up to the board to explain the difficulties in implementing its recapitalization plan and explain why the successive versions of the plan “never received the green light from the European authorities (Directorate-General for Competition and ECB), he said. Then eventually launch a new situation for the table: The Bank of Portugal has not given the necessary green light for Banif return the last 125 million that the bank still owed contingent capital (so-called Coco’s) because this would weaken the bench swing. Thus, Banif remained in default against European rules, as this value was missing since December 2014.
The Member of BE, Mariana Mortágua, wondered who walked the bop to do to accept for three years a Brussels rejection to eight Banif restructuring plans, and how he had received the Santander on December 18, when the measurement resolution was decided the next day. Already João de Almeida, the CDS asked if the governor had knowledge (as part of the ECB), the imminent needs of capital of Santander, and why it decided to intervene Banif that time, since the one who decides is the Bank Portugal and not the Government. Immune to references to the role of the regulator, Costa said he was unable to comment on the dialogue between the previous government and Brussels and that the BDP had nothing to do with trying to voluntary sale of state shares in Banif, a topic of management and from the government. He admitted, however, that accompanied the process as supervisor.
Carlos Costa said the bop learned that the Ministry of Finance had informed the Directorate-General for Competition (DGCOM) that Banif was with insolvency problems and triggered the necessary mechanisms. Making a point to ensure that did not leave him the information leak to TVI, found that the news of the intervention led to an outflow of deposits, which Banif was a complicated situation.
The Finance, explained the deputy governor, José Ramalho, reported the Bank of Portugal on 18 December that the voluntary sale was shaky, which was formally confirmed the next day. Logo on Friday, the bop began to prepare the measure of resolution, as Brussels prevented the creation of a bridge bank. Before, according to Carlos Costa, the BOP had asked the Banif, on 17 November, a capital enhancement plan. And if the management of Banif knew nothing of the measure of resolution in advance, it occurred for obvious reasons. “: To prevent information leakage
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