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The prime minister, António Costa, called the president of the Portuguese Association of Banks (APB), Fernando Faria de Oliveira, to make him aware of the need for the bank to make the loan to the Resolution Fund in 2021 to inject in Novo Bank on account Losses of 2020.
The news is advanced by the newspaper “Expresso”, this Saturday, September 26, which reports on a meeting between the prime minister and the president of APB in August.
António Costa is concerned about the lack of political margin to include in the State Budgets for 2021 the amount that the Resolution Fund must inject into Novo Banco’s capital and wants to prevent the Novo Banco problem from spreading, due to lack of capitalization to the national financial system.
The political left, specifically the Left Bloc, has already warned the Executive that it does not accept that the State register a transfer of public money to the Novo Banco, through the Resolution Fund, which, if it occurs, will prevent the approval of the next State Budget . by blockers.
The State signed an agreement with the Resolution Fund, signed with the sale of Novo Banco to Lone Star, by virtue of which it promised to lend up to 850 million euros per year.
The value of the losses recorded in Novo Banco in 2020 will only be known at the end of this year. In the accounts for the first semester, the institution led by António Ramalho revealed that, until June 2020, the need for the call for capital amounted to 176 million euros.
Regardless of whether the State lends money to the Resolution Fund or not, the totality of the capital injected by the Resolution Fund to the Novo Banco for 2021 will count towards the deficit because it is a public entity.
This week, António Ramalho, CEO of Novo Banco, told Bloomberg that he intends to sell bad debt portfolios worth 1.2 billion euros by the end of the year. Of these credits, 75% are covered by the contingent capital mechanism.
However, the Resolution Fund wants to postpone the sale of these credit portfolios because it considers that this is not the right moment in the market, according to the “Observer”.
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