Banco de Fomento Recapitalisation programme rejects Eurogalva

A company hoping for millions of investment in European funding disbursed through Portugal’s development bank has had its application rejected despite initially being preliminarily accepted on October 30 last year.

Eurogalva, a company that manufactures galvanised metal and other metal parts had expected to receive an investment of €6 million from the Banco de Fomento which is responsible for considering applications and disbursing European ‘bazooka’ funding to eligible companies signed up for the bank’s Strategic Recapitalisation Programme.

However, the application has finally been rejected because it does not meet all the eligibility conditions according to an official source at the bank.

In May, Eurogalva’s CFO, Samuel Coelho had said he was not very confident about the negotiations given the time it was taking to finalise the negotiations and get a definite answer.

The online news source ECO asked the Banco de Fomento the reasons that led to the company’s removal from its list of eligible candidates to receive funding. “During the usual due diligence phase, in which documents are provided and analysed, it was noted that the necessary eligibility conditions were not met, so the funding was not approved, and the company was removed from the list of candidates,” explained an official source at the institution.