The chief executive of Caixa Geral de Depósitos continues without committing to dates for the return of state aid, including 900 million in hybrid instruments. The indication is only one:. “Timely”
In 2012, the public bank received a government cash injection of 1,650 million euros, 750 million of which by shares, 900 million from hybrid instruments, which pay interest, called CoCos. And has not yet reimbursed the latter, or partially or fully, which led to the former prime minister to show up worried.
“What is the concern with CoCos? I see a lot of people worried with CoCos “joked Jose de Matos when asked at the press presentation of the losses of 171.5 million euros recorded in 2015 conference, without referring to the former head of the Executive.
José de Matos stressed that CoCos meant one “huge cost” to CGD, but to no avail when it will start paying back state aid received in 2012. “In time” is what it says on the run. “Our capital plan is an aspect taken into account in due course, and when it is resolved will have a positive impact.”
In their replies, the chief executive of CGD, which declined to comment on the intention of the government not to renew the charge, still left a lament on the increase in share capital when Pedro Passos Coelho was prime minister. Had been better, he said, that aid had been only by actions and not with CoCos. “If we had capital before CoCos, would least 90 million euros of costs per year,” he said.
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