Nuno Amado spoke on ECO Talks, as a part of the 2nd Economics Week organized by InvestBraga, about the Portuguese banking system and the Republic's rating.
Nuno Amado, Millennium BCP‘s CEO, stated this Wednesday, in Braga (around 360 km/ 225 miles north from Lisbon) that the Portuguese banking is indeed capable of lending money. Amado spoke on ECO Talks, as a part of the 2nd Economics Week organized by InvestBraga.
The CEO of the Portuguese bank BCP disclosed that before, the banking ratio was 100 euros in deposits to 165 euros in credit; now, the ratio is 100 to 100, which is good news. As far as Nuno Amado is concerned, balance and normality returned with “ECB’s auctions [LTRO Long-term Refinancing Operation]”.
"Portuguese banking is capable of lending money, and there was a time when that was not the case.”
BCP‘s CEO mentioned that Portuguese companies now finance themselves in 40 basis points below the Portuguese public debt: “What I tell companies is not to just look at the price. Price is important, we need to be competitive, but look at the long-term partnerships”, Nuno Amado states.
Concerning the financing of the Portuguese economy, BCP’s CEO highlighted that “credit decreased where it had to, and increased where it needs to increase”. However, he warns: “I believe credit stock can decrease, since we have to deleverage the economy“. Nuno Amado assures that credit to the productive sector and exports will not be included in this financing cut.
Nuno Amado believes improving the Republic’s rating is the necessary step towards improving the Portuguese banking: “It is absolutely essential for the country, for companies and for the banking. It is a key step and I am confident the rating will be revised, in case there are no changes to the course being taken”, he underlined. He is confident that revision will happen: “A rating revision when debt decreases is expected, but it will depend on how fast that step is taken; we need, however, more than one quarter to improve”.