Tuesday, April 19, 2016

Resolution Fund should take a significant portion of compensation to victims of BES – Jornal de Negócios – Portugal

The banking resolution fund should be called to participate in the solution to the injured commercial paper of GES in an amount of up to about 200 million euros, told Lusa source connected to the process.

On Tuesday, 19 April afternoon runs in Lisbon, another meeting between the Association of the Indignados and Deceived Commercial Paper, Bank of Portugal, the Commission of the Securities Market (CMVM) and BES, the ‘bad bank’ that was with so-called active ‘toxic’ of Banco Espírito Santo, in which the Government will also be present as a mediator.

This is the third meeting after the signing of the memorandum of understanding at the end of March in these authorities have pledged to find a solution to early May to allow customers to recover at least part of the amount invested in commercial paper in companies Espírito Santo International and Rioforte, purchased the BES counters.

at stake are 2,084 commercial paper subscribers claiming 432 million euros.

the investment was reported almost completely lost when the ‘implosion’ of the Espírito Santo Group (GES).

According to him the source linked to the process at the moment are provided around EUR 200 million, which will come from the bank resolution fund, and the Bank of Portugal will be available to accept this solution.

However, the meetings continue a since the representatives of the injured parties want to secure another 100 to 150 million euros to minimize losses for investors of commercial paper.

To be already laid out the possibility of the money that will compensate these investors come from the Deposit Guarantee Fund and the Compensation Scheme to investors, being the hypothesis on the table to be ‘ bad bank ‘BES called to account, in addition to the resolution fund.

it is not yet set the amount that each customer can receive, but there is already a draft of criteria as to how it will be calculated the amount each customer will receive, as the investment was made, but also the age of the person concerned and even personal fortune.

Officially, the officials who are in negotiations do not advance information on details of the discussion, citing confidentiality.

Although the retail customers aggrieved by the commercial role of GES have been developing various actions to recover the money invested since the collapse of the group, already in 2014, this topic was strengthened after, in February, the Prime Minister, António Costa, have publicly censured the governor of the Bank of Portugal, Carlos Costa, to be a “drag” a solution to the problem.

the government took this issue as a priority considering what is at stake the restoration of confidence in the financial system.

in June 2015, the governor of the Bank of Portugal had said in parliament that the solution to the injured BES had to come from the CMVM and not the governing body, since it comes to securities and not deposits, and reaffirmed that the responsibility for damaged commercial BES role can not be attributed to the New Bank, but the BES itself.

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