BPN represents 50% of public company debt

 In Bankruptcy and liquidation, Banks, News, Parpública, Parvalorem

Failed bank Banco Português de Negócios (BPN) still represents around 50% of public company debts despite the fact that the bank failed and its assets and losses were taken over by the State 16 years ago.

BPN was nationalised in 2008 by the José Sócrates PS government with a promise that the operation would not cost the taxpayer a red cent.

However, BPN continues to make a dent on Portugal’s public accounts.

The failed bank not only incurs expenses year-after-year since its collapse, but has also caused a considerable debt to the State which by last June amounted to €5Bn – the equivalent of 50% of all public company debt.

In the draft State Budget of 2025, the government has accepted a public enterprise debt of €9.9Bn.

On the list of indebted State enterprises is included one of three financial vehicles set up to manage BPN’s toxic assets that still exist: Parvalorem with a debt of almost €5Bn, or 50% of the total.

Among the 11 companies on the list, Parvalorem occupied first place, followed by Infraestruturas de Portugal (IP) with €2.2Bn, (22.4% of the total), and the Lisbon Metro (Metropolitano de Lisboa (€2.1Bn or 21.8%).

The remaining State companies with financial debts to the State are responsible for 6% and include the Alqueva damn development company Empresa de Desenvolvimento e Infraestruturas do Alqueva, and the former school buildings stock company Parque Escolar, State broadcaster RTP, transport company Transtejo, VianaPolis (a soon-to-be-dissolved property patrimony company), and Porto Metro.