BPN has already cost Portugal almost 4 billion euros
A report disclosed by the Court of Audit reveals that the accumulated cost of nationalizing Banco Português de Negócios (BPN) already surpassed 3.66 billion euros in the end of 2016.
The accumulated cost for the Portuguese State of nationalizing Banco Português de Negócios (BPN) continued increasing and by the end of 2016 surpassed 3.66 billion euros, according to a report disclosed by the Portuguese Court of Audit.
The report states BPN‘s weight on public accounts worsened by 420 million euros last year (provisional figures). By the end of 2016, the accumulated balance of budgetary revenues and expenses from the nationalization and re-privatization of BPN and the constitution and operation of their corporate-vehicles Parvalorem, Parups and Parparticipadas ascended to -3.66 billion euros.
This loss results from the negative accumulated balance of previous years: 735.8 million euros in 2011, 966.4 million in 2012, 468 million in 2013, 476.6 million in 2014 and 593.9 million in 2015 and 420 million last year.
BPN‘s invoice to the State could continue increasing, more so because the Court is still missing the 2016 data on Parvalorem, Parups and Parparticipadas — the corporate-vehicles created to manage the bank’s toxic assets –, which in 2015 had negative equity capitals totaling 2,200.7 million euros, “charges which could be supported by the State in the future”.
BPN‘s nationalization in 2008 was the first in Portugal since 1975 and the fall of the bank began a series of judicial proceedings. Four years after it was under CGD‘s management, BPN was sold to Portuguese Banco BIC, an entity with Luso-Angolan capital.
