CDS-PP considers new injections at Novo Banco to be “imprudent” – ZAP

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José Sena Goulão / Lusa

The president of the CDS-PP, Francisco Rodrigues dos Santos

The president of the CDS-PP, Francisco Rodrigues dos Santos, defended today that it would be “imprudent” to inject more money into Novo Banco without knowing how the administration “has been acting”.

In the margins of a meeting with the Confederation of Farmers of Portugal (CAP), the centrist leader was asked about the audit of the Court of Auditors to the public financing of Novo Banco, known on Monday.

From the perspective of Francisco Rodrigues dos Santos, “For the sake of transparency and rigor in the application of public funds and the credibility of institutions”, it is necessary to know “how this new management of Novo Banco has acted”.

“Without this income statement it seems-me reckless to be injecting new tranches of money into the Novo Banco ”, he maintained, arguing that it is necessary to understand the“ point of the financial and financial situation in which the Novo Banco finds itself and to understand the viability of the new capital injections made by the State ” .

Despite insisting that, “without results, without management demonstration that has been made by this Novo Banco administration “,” it is premature “to evaluate new transfers, Francisco Rodrigues dos Santos pointed out that,” since the State is a good person, the contracts are to be fulfilled “.

“Now, it is important know what is the state of the art and the situation in which Novo Banco finds itself and also to investigate some type of operations that were carried out in recent years that aroused some suspicion (…) the Government says that there is no money to give to the economy, but for cases like Novo Banco, for TAP it always finds a financial solution. This ends up indigning the Portuguese and takes away some credibility from the Government ”, he criticized.

For the centrist leader, it is necessary “some justice, some equity, and it has to be replaced naturally by the Government ”.

Asked about the audit conclusions that refer lack of transparency in the sale process of Novo Banco, the president of the CDS-PP considered that, “for the sake of public debate, it would be good if it could be substantiated in concrete acts where this lack of transparency was verified”.

On the fact that the Left Bloc demanded the Government on Monday not to make any capital injection in the Novo Banco this year, Francisco Rodrigues dos Santos criticized the party’s “hypocrisy”.

“Because it approved successive State budgets that made transfers to Novo Banco viable under the contract that was entered into between this Government and the management of Novo Banco and during this period we did not see much discomfort on the part of the Left Block in being on the side of the solution government that continued to throw money at Novo Banco ”,

Banco de Portugal and the Resolution Fund considered on Monday that the Court of Auditors’ audit of Novo Banco demonstrated that there are no impediments to the injection of public money into Novo Banco.

Both entities agreed that the audit demonstrates that the contracts made within the scope of Novo Banco, namely the contract of the contingent capital mechanism by which the State has capitalized the bank, must be complied with.

They also highlight the conclusion of the audit that the public capitalization mechanism has been fundamental for the stability of the financial system.