Parvalorem pays €100 million to State but owes €5.3Bn

Parvalorem, a Portuguese public company set up to manage and claw back assets from the nationalised bank BPN which collapsed in 2008, has managed to pay the State back around €100 million.

It is, however, a drop in the ocean compared to the €5.3Bn of taxpayers’ money outstanding that was ploughed into the bank in what was one of the most costly State bailouts of a financial institution in Portuguese history – only exceeded by the estimated €11Bn paid into Novobanco over eight years following the collapse of BES in 2014.

According to Parvalorem’s financial report for 2023, this repayment enabled the company that manages BPN’s toxic assets, to reduce the debt to €5.3Bn last year. The loans agreed with the Directorate-General of the Treasury and Finances (DGTF) now total €5.92Bn including interest.

The company’s net asset has fallen €122.8 million to €455.7 million. Own negative capital increased to €4.86Bn, also reflecting a loss of €98.2 million and an increase in reserves of €68.1 million as a consequence of recalculating the cost of paying down the loans from the DGTF.

Parvalorem was set up in 2010, alongside another two companies – Parups and Participadas – to administer the BPN’s assets and patrimony.