The finance minister was interviewed by national TV channel RTP3 and said that "not one euro" more from public money will be given to Novo Banco.
Portugal’s Finance Minister Mário Centeno has said “not one euro” of public money will be given to Novo Banco, because the Resolution Fund loan will be paid back in 30 years.
“This recapitalization will be made, once again, through a public loan but that does not mean the state is giving money to the bank”, he noted.
“The Resolution Fund borrows money from the state and that loan will be paid back in 30 years”, he told RTP3 TV channel.
The minister is to be questioned by MPs this Thursday.
Last Friday, Novo Banco disclosed €1.412 billion of liabilities in 2018 and announced a request for €1.149 billion from the Resolution Fund for the bank’s recapitalization.
Following that request, the Finance Ministry announced an audit of the public credit granting process.