“The bad boy will grow with meaning”

Miguel Maya, chief executive of Millennium bcp, warned on Tuesday that “bad loans will grow meaningfully” due to the state of emergency declared after the coronavirus epidemic, which froze much of economic activity.

The banker emphasized that there are “viable companies” that cannot access the lines of credit, because they have restructured, arguing that these companies should be able to benefit from the support offered with a state guarantee.

“This is an issue that is poorly resolved,” said Miguel Maya, who is heard this afternoon in the Budget and Finance and Economy Commissions.

Miguel Maya warned that these viable companies “must be qualified” and cannot “be stigmatized”. He stressed that the crisis “will leave some companies behind” and that “it is necessary to define very well which companies will survive”.

This is because, according to the CEO of BCP, there are companies that are already in a situation of financial fragility and that will not be able to survive if they are “more indebted”.

The Commissions hear from bank officials today and tomorrow about the processes for granting lines of credit and default guaranteed by the state.

Updated at 5:38 pm with more information