The government only at the last hour tried to hold back Domingues – Diário de Notícias – Lisbon

Finance asked for, on the 29th, that he would be in the CGD until the ECB give the green light to Paulo Macedo. And agreed to resolve the legal problems resulting from the extension of the mandate. This has not happened and Domingues came out

The year is new, but the soap opera persists: the Caixa Geral de Depósitos (CGD). The passage of António Domingues by the chair of the president of the bank after all ended sooner than we all anticipated: last Friday, the guilt of a volte-face from the last time you did that the CEO would leave the position with the end of the year. The decision of the former administrator of BPI has been reported to the guardianship precisely on top of the end of 2016.

Although on Friday, the 30th, all information pointing to that Domingues would have accepted to stay in the leadership of the public bank to the entrance of Paulo Macedo, the following day, Saturday, the 31st day, everything changed.

As the DN/Live Money found, was already in the last hour of 2016 that António Domingues reported to the minister Mário Centeno, via an e-mail sent by his lawyers, that he was not willing to stay in office after 31st December, caught the ruler by surprise. Also the request of the minister for Domingues stay a few more days in the CGD will have arisen on the top of the hour, already on the 29th of December, with the banker’s statement then that would be in charge – hence that on Friday everything was apparently resolved.

to Understand the “why” of this volte-face is, however, a task that carries contradictory versions according to the sources heard: if, on the one hand, it is reported that tony wright has expressed the willingness to stay in the position until the arrival of Macedo from the government to solve the legal problems inherent in the extension of the mandate, which would have been accepted by Finance, on the other hand it is also pointed out that there has not been any request António Domingues to stay in office a few more days, so the decision to go out with the end of the year, having said that I would be seen as incomprehensible.

Not on purpose, António Domingues will be heard tomorrow by the members of the Commission for Budget, Finance, and Administrative Modernisation, which will give opportunity to the now ex-CEO of CGD to explain to the public about the case. The recapitalization will be another of the issues that the mps will seek to drill down into the best, being sure that the void in bank does not affect the advancement of the same.

Coconuts and Parcaixa advance

The output of António Domingues does not lock the progress of the first phase of the recapitalisation of the bank, planned for tomorrow, confirmed to the DN/DV sources close to the process. And, if the first phase is not delayed, the second phase, which includes the injection of 2.7 billion in the bank, and the first issue of bonds to private, keeps up with the date of march 15 for next.

A phase which starts tomorrow, has two steps: first, the CGD will appeal to your booking, from 1.42 billion euros, to cover the losses passed; then the bank sees increased their social capital through transformation of hybrid vehicles (CoCos) and the transmission of the participation of the State in the Parcaixa. This operation will increase the social capital of the CGD Group, with 5.9 billion to 7.3 billion euros.

then, the capital stock of the bank will be reduced by six billion euros to 1.3 billion euros, through the extinction of 1.2 billion of the bank’s shares of five euros each. Of this reduction, and in addition to a new slice of $ 1.4 billion to cover the losses remaining, will be used still 4,59 billion for the establishment of new reserves in the balance sheet of the public bank. the P. B.