CGD calls for suspension of BCA sale

 In Banks, News

Caixa Geral de Depósitos (CGD) has recommended that the Ministry of Finance should temporarily suspend the sale process of the Banco Comercial do Atlântico (BCA), the largest bank in Cape Verde 58.2% of which is held by CGD.

The bank has also recommended the cancellation of the sale process of Banco Caixa Geral – Brasil, according to Jornal Económico.
Now it will be down to the ministry led by Fernando Medina to take the decision at a Council of Ministers meeting given that the banks are State owned.
The pressure on CGD to sell both institutions has lessened since it completed its strategy plan. The sale had been part of that plan for 2017-2020 negotiated with Brussels (DG Comp), and which required commitments and restructuring in return for the bank receiving a capital injection of €4.9Bn from the State.
All told, Portugal has to date injected some €24Bn into Portugal’s banking system since the economic, banking and sovereign debt crises over the past 12 years.
Seven banks needed State intervention to stop the system collapsing. In addition to CGD, BCP received €3Bn, BPI €1.5Bn, BES/Novo Banco at least €5Bn, Banif €3.35Bn, BPP €450 million, and BPN €3.1Bn