Deadlock, uncertainty and unpredictability. The issue of commercial paper of Espirito Santo Group (GES), placed in BES retail customers, remains open. Carlos Costa, Governor of the Bank of Portugal, took over this week’s Parliamentary Commission of Inquiry to GES / BES case, the New Bank does not have to pay the commercial paper, which is an obligation of the issuer. Thus removed the expectation created after the intervention in the BES that would be a commercial proposal of the New Bank to customers, which was implicit in the resolution of 3 August 2014. Carlos Tavares, chairman of the Securities Market Commission (CMVM ), defended on the same day, a contrary position: full payment of commercial paper. A day later, Maria Luís Albuquerque, Finance Minister assured that the Government will not take any decision on this matter. It’s a mess. And it was one of the hot topics in the last week of public hearings of media CPI.
Carlos Costa stands firm against the obligation to pay, fear opening a Pandora’s box, not explained to Members, despite the insistence of these, why was admitted to the reimbursement of about € 600 million of commercial paper at an early stage and because there was, in early 2015 a retreat. The governor suggested, however, that Brussels will have alerted to the fact that these assets, once passed to the ‘bad bank’, can not switch back to the New Bank because not included in the latest balance sheet. Where are after all the provisions to pay the commercial paper of GES, made before the resolution on the BES? It was another of the issues raised by Members. Remained the doubt. The fierce defense of non-payment of commercial paper could be related to the sale value of the New Bank and protection of the institution ratios.
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