Teixeira dos Santos asks for speed and transparency in the recapitalization of CGD – Jornal de Negócios – Portugal

The process of replacing the management of Caixa Geral de Depósitos is “to drag on for a long time,” and would be “desirable” that was “faster process.” This drag causes instability, wear in public and internally. “We live in a time when those who are know will leave, and has not yet entered successor,” impacting “capacity management and mobilization.” The “institution mood is affected by it. And that’s not good.”

The words are Teixeira dos Santos, a former finance minister and future president of BIC, which interview with TSF also called for transparency in the process of recapitalization of the public bank. “It has been generating a lot of doubts and controversy. What gives the perception that it is unclear why that amount, and while not quite realize the exact amount and the reasoning I think we will always have a noise, essentially political, which it is not desirable. ” Therefore asks speed, transparency and clarity in its resolution. “This drag a doubt the environment is not beneficial either to the institution or to the financial system as a whole.”

As for the sale of the New Bank, Teixeira dos Santos said that “it would be good if he could sell the new bank because it would show that there was capacidqade to solve a delicate and difficult situation and solve it in such a way that would show there who wanted to invest in a bank situation in Portugal. it is a sign of confidence in the country and in the banking system. ” Therefore, fails the sale of NB “would be a sign that though there are still doubts and fears about the country and banking system and let me will worry.” Let the former ruling concerned a time that will take the lead of a financial institution. Will be the new non-executive chairman of BIC, institution that is the subject of two research processes by the Bank of Portugal. A challenge, told TSF, “is not easy”.

But the ruler who was the face of the request for foreign aid Portugal in 2011 the IMF, European Commission and ECB says that “sincerely easy challenges are not great encouragement. I got used to face difficult situations and hope that the situation will not be difficult for us all well and good for the institution that I lead. I got used to face less easy situations, and so I face this new challenge with confidence that I have ahead. ”

In a sector that has several unresolved issues: CGD, New Bank, but also the level of bad loans. Teixeira dos Santos argues that we should study the solution presented by António Costa, and it deserves consent of the governor Carlos Costa, to create a vehicle for this credit risk. We must, he said, “very focused and very seriously the situation of the financial system and adopt measures that signal that the bad debt situation is in a certain way, predictable, corrective and mitigating risks that this poses to the banking sector.”

The vehicle, he said, “may be a resolution of the problem through worthwhile to study and ponder.” And the heads of the bank shot: “I see with some concern that the banks extend long the high level of credit risk because it greatly increases their risk aversion, and ultimately reduce the appetite to finance projects.” Therefore, he added, “we can be to risk postponing a problem, look at the hand, find that time will solve and what can happen is that time may not allow the best resolution and falling into a situation where we have to take stronger action. Only then will cost more. ”

Teixeira dos Santos said Portugal should look to the Italian model “can give some clues” and to help “avoid some less good things.”

Plan B must be made but not announced

Believing that the budget for 2017 will be difficult and restrictive nature, Teixeira dos Santos said with reference to 2016 expect that “there is an idea of ​​measures which may to be taken if necessary to ensure that budgetary targets are achieved. ” Still, it makes sense to announce them without having the certainty that must be implemented. The political cost is great.

Teixeira dos Santos just for criticizing the European Commission in relation to claiming to be “a dose of mistrust of this government that there was no comparison with previous governments.” There are, he believes, a “political prejudice that may underlie this EC pressure and this insistence of Plan B and associate it with sanctions for last year’s performance.” It’s a collage, he says, forced.