State Budget with €300M for failed banks

 In Banks, Companies, News, State Budget

Portugal’s State Budget for 2022 has a kitty of around €300 million to help entities linked to Portugal’s failed private banks Banif and the Banco Português de Negócios (BPN).

In the budget proposal which was rejected by parliament in October, the Ministry of Finances foresaw expenditure of €295 million on seven financial companies — four linked to Banif and three to BPN.
In the new version which was presented on Wednesday last week, this expenditure falls to €294 million since one of these vehicles – Banif SA (expense of €1 million) — no longer figures.
Regarding Banif as a whole, a total expenditure of €177 million in 2022 is expected, while for Oitante, €146.6 million is foreseen.
In turn, €28.7 million is set aside for Banif Imobilíaria and €1.7 million for WIL – Projetos Turísticos. In the case of BPN, the State Budget 2022 has earmarked €33 million for Parvalorem and €16.4 for Parups.
The total amount for the vehicles that belonged to these two failed Portuguese banks is more than the €209 million for which Novobanco has applied to the Resolution Fund, but which the new Finance Minister, Fernando Medina says it will not get. The amount is also higher than tax relief for 2022.