recapitalization of the value of CGD depends audit – Daily News – Lisbon

The recapitalization of the public bank continues to be negotiated with Brussels and will take into account the audit that the government will ask the Antonio Domingues team to order

the recapitalization of Caixa Geral de Depósitos (CGD) is several months to be negotiated with Brussels not to be considered aid of state, but the amount to inject will depend on the outcome of the independent audit the government will ask the new public bank management, which will be led by Antonio Domingues. What “is apparently acquired is that the capitalization is public”, said yesterday Marcelo Rebelo de Sousa.

“The amount will be determined after the entry into the new administration functions, sustained on audit already announced by the government and due to the ongoing negotiations “with the European Commission, told DN / Money Vivo official source of the Ministry of Finance. At issue will be four to five billion euros – including the return of EUR 900 million contingent capital – that the executive wants to inject into the public bank. But want to do it as if it were a private shareholder and return to profitability in five years, so this capitalization is not considered a state aid, which would defeat the Brussels rules. The amount was never confirmed by the guardianship and Finance took just that with the recapitalization will be a restructuring plan that foresees cutting 2,500 jobs and the closure of 300 branches.

The audit announced in June by government will evaluate the actions of management in CGD since 2000 and is one more piece in the study of the recapitalization plan, explained at the time the finance minister, Mário Centeno. This will be commissioned by the new management team, which will have 19 directors:. Seven executives, including Antonio Domingues, and 12 non-executive

The message from the ECB

Finance, however, have denied that the high number of administrators has raised objections from the side of the European Central Bank (ECB), which has to validate the suitability of management, as said Luís Marques Mendes in his Sunday comment on SIC, citing a letter dated June 8 sent by the ECB to CGD.

official Source of Finance explained that “the talks have evolved constructively.” “Both the ECB and the Commission have supported the work, and there was not any veto the proposals made by the government, including the veto the proposed names or any requirement or submit an alternative plan.” And let the message: “. Dissemination of letters between European bodies and CGD does not contribute positively to the resolution of issues that are crucial to the future of CGD”

In his commentary, Marques Mendes referred that the ECB or fewer administrators, 15 instead of the 19 proposed. He said that being required an alternative to the recapitalization plan and that the ECB or managers with experience in banking, opposing the accumulation of functions of chairman of the board of directors and the executive committee, as will happen with Antonio Domingues.

the current administration, led by José de Matos, resigned in June but will remain in office until reaching the new team, which will also take place in July. The President said earlier this month that the new team would enter functions between 10 and 12 days, but as long as there is no green light ECB Antonio Domingues side can not take the lead box.

Marcelo reaffirmed yesterday that all have “the notion that time is short and it is expected that in the coming days there is the knowledge of the conclusion of negotiations between Portugal and the European institutions”, reminding that “is apparently acquired the capitalization is public.”