Monday, September 15, 2014

BES. Solution was better for taxpayers than nationalization … – iOnline

BES. Solution was better for taxpayers than nationalization … – iOnline

The resolution made in Banco Espírito Santo (BES) carries less risk to taxpayers than a nationalization and is a better solution than state intervention made in other banks, according to the president of Banco BIC Portuguese.

“This resolution is better than the nationalization of BPN done on time, since it minimizes the risk to taxpayers. Today there are instruments that did not exist at the time,” said Luís Mira Amaral a news agency Lusa .

“The decision is good.’s The best in the current context, but should have been done early. Should not have been the capital increase [BES in June made a capital increase above the billion euros], “he added.

And reiterated: “The decision is better than either the nationalization of BPN, either from the subscription of the ‘CoCo’ [bonds convertible into capital] in BCP, BPI and Banif”.

Mira Amaral stated that “things are evolving” and gave an example:.. “Take the case of LBW [Portuguese Business Bank] in the time of Dr. Miguel Cadilhe When he asked for 600 million euros to the Government there was the ‘CoCo’ those instruments after the Government gave the Banif, the BPI and BCP. If there were, the solution of BPN could not have been nationalization. ”

“I no longer argue who is right, if the then Finance Minister, Professor Teixeira dos Santos, or my friend Miguel Cadilhe. What I say is that the BPN, in three and a half years interim management of the Box [General Deposit] continued to destroy value, “he said.

“The state should have, at the time, even if he wanted to nationalize the BPN, called private banks to see who was in charge of the event. Guess it was a mistake to keep for three years and a half the situation “defended.

“Then came the program of the ‘troika’ and the famous Euro 12 billion available for banking.’s Government made a statement in BPI, BCP and Banif, through the ‘CoCo’ which are loans that the government gave these banks and are halfway between equity and debt, “he said.

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