Lisbon’s Santa Casa da Misericórdia confirms that it may invest up to 30 million in Montepio

Lisbon’s Santa Casa da Misericórdia (Holy House of Mercy) will indeed enter the capital of Caixa Económica do Montepio Geral, according to the confirmation from the institution’s ombudsman, Edmundo Martinho. The ombudsman disclosed that the deal will be concluded in the next couple of weeks and the entrance will take place “in line with what Associação Mutualista decided last week, of authorizing Mutualista’s board to sell up to 2% of its capital”.

Lisbon’s Santa Casa da Misericórdia will not enter this business alone. It is expected that other holy houses and social institutions will help subscribe the 2% of capital to be sold. But there are still doubts about the amount to be invested by the Lisbon’s Santa Casa da Misericórdia.

The ombudsman explained the business: “We are speaking of a percentage that refers to around 3 or 4% of the assets of Santa Casa, at most, which means that it is a very safe investment, one that does not put into question any of the extremely large investments we foresee for Lisbon”.

Since the assets of Lisbon’s Santa Casa da Misericórdia stood at 743 million euros in 2016, if the contribution is of 3% of the assets, around 22 million euros would be invested; if it goes up to 4%, the investment may reach 30 million euros.

Edmundo Martinho emphasized that this “deal is not a subsidy nor an aid, but rather an investment”. The ombudsman also highlighted that this financial intervention will concern a very small percentage of the holy house’s assets, although it will allow the Lisbon’s Santa Casa da Misericórdia to have non-executive representatives in Caixa Económica Montepio Geral and also to choose, along with Associação Mutualista, who the General Assembly chairman is”, he stated.

Caixa Económica Montepio Geral is fully held by Associação Mutualista Montepio Geral. The possibility of having Lisbon’s Santa Casa da Misericórdia, an entity protected by the Government, entering the capital of the bank Montepio Geral has been on the table since last year. The Portuguese Social Democratic Party (PSD) stands against this investment: this Friday, the party expressed its wish to have the Government forbid Santa Casa from entering Montepio’s capital by handing in a resolution project.