Passos Coelho: CGD “creates great pressure on other banks”

  • ECO News
  • 6 December 2016

Passos Coelho warns the CGD situation is creating “great pressure on other banks”, adding he will still criticize CGD’s recapitalization, regardless of Macedo having been a minister in his government.

The issue with Caixa Geral de Depósitos is causing “great pressure on other banks”, stated the leader of the Portuguese Social Democratic Party (PSD), Pedro Passos Coelho, on the first ECO Talks – an event organized by ECO this Monday, in Lisbon.

“It was discovered in two months – very conveniently–, losses that the auditor missed during eight or nine years”, the PSD leader wondered, stating he continues to see no reason that justifies “an added need [for capital] of two to three billion euros” for Caixa Geral de Depósitos.

“This is a story that raises many ethical and political questions”, he stated, adding: “What implications could this have for the rest of the financing system? It creates great pressure for other banks who have the same auditor and who have businesses sustained by CGD that cannot be handled one way by one bank, and another by a different bank”.

Pedro Passos Coelho considers the management of this dossier by António Costa and his government has done nothing but “bring more threats and doubts about the financial system”. More so because although the executive has said the recapitalization is urgent, “so far nothing has been done, it has been all talk”, he criticized.

Concerning the new CEO for Caixa Geral de Depósitos – Paulo Macedo, former Portuguese Health minister –, Passos Coelho considers him to be a “very wise” person, one that will not cause a stir. “I don’t know if that was the intention: to go get my former-minister so the PSD would quit commenting on CGD…”, the leader of the opposition stated, adding the government’s choice does not influence his judgement: he will continue to criticize the situation of the public bank, namely the administrators’ salaries.

And will Paulo Macedo earn the same salary António Domingues did? “I believe he will not”, answered Passos Coelho, pointing out that his party wants back the rule that would make him “earn much less”. The leader of the Portuguese Social Democratic Party argues “the State should set the example when handling public money”, since taxpayers money will be entering the public bank.