Brussels extended Banif hole at 400 million – TSF Online

Resolution of the cost could have been 400 million euros less. Director General of the decision of the European Competition added this amount to the final cost to the state.

Brussels and Frankfurt afunilaram options for Banif problem. That was the idea advocated by the deputy governor of the Bank of Portugal the Parliamentary Commission of Inquiry into Banif. José Berberan Ramalho (who also chairs the Resolution Fund) said even though the sequence of actions that led to the decision to withdraw was “a successive imposition that has been done.”

Ramalho stressed that the recapitalization case public Banif with integration in the Caixa Geral de Depósitos was “barred” by Brussels, and that the possibility, weighted by the government and supported by the regulator, to create a bridge bank, similar to what was done in the case of BES was ” . blocked “by the European Central Bank (ECB) by the Supervisory Single Engine

Even the public costs of the option taken were highly inflated for Europe: the deputy governor noted that the discount of 66% ( haircut ) applied to the Banif assets that were transferred to the Octant, special vehicle created for the purpose and that was in the state orbit, reached euro 400 million.

These assets ” were subjected to a heavy haircut determined by the Directorate General for Competition, at their value has been reduced to 746 million euros; the acquisition of these assets by the vehicle was financed by issuing bonds guaranteed by the resolution fund and counter-guaranteed by the State, which were delivered to Banco Santander Totta, “he said in parliament.

The total cost of resolution (including cost to shareholders and subordinated creditors) was “3.3 billion”, and was “next to the provisions of contingency scenario prepared by the Bank of Portugal (EUR 2.9 billion).” the difference explained , “results from the combination of several factors, especially the most haircut .

Santander only got 20% of the former headquarters of Banif

it’s broken the mystery of the ownership of the former headquarters of Banif:. the property in Lisbon was part of the portfolio of a real estate investment fund, Banif Properties

This fund was held to 20% by the bank, with the remaining capital held by other group entities and other investors.

Joseph Ramalho undid the mystery of the seat of Banif

the revelation was made by the chairman of the Resolution Fund and deputy governor of the Bank of Portugal, José Berberan Ramalho, who explained that as only the Banif – and not the other group entities – was resolution target was only this participation that transitioned to Santander

.