Parliament annuls transfer of €476M from Resolution Fund to Novo Banco

  • Lusa e ECO News
  • 26 November 2020

The Portuguese parliament has decided to cancel the transfer of €476 million from the bank Resolution Fund to Novo Banco.

Portugal’s parliament has adopted the proposal for an amendment to the state budget cancelling the transfer of €476 million from the bank Resolution Fund to Novo Banco, with the Social Democratic Party (PSD), BE (Left Bloc), PCP (Portuguese Communist Party) and PAN (People-Animals-Nature) voting in favour.

The proposal was passed on Wednesday despite votes against by the Socialist Party (PS), Chega and Iniciativa Liberal.

Opposition agrees to amending budget if Novo Banco amount confirmed

Portugal’s main opposition party, the Social Democrats (PSD) on Thursday pledged to agree to an amending budget in 2021 to pay the amount due to Novo Banco, but only if the audit of the institution justifies it, Duarte Pacheco announced in parliament.

“After the audit [from the Court of Audits] is complete and if the amount is due, the government can present an amendment to the budget and the Social Democratic Party will vote in favour because we have to honour our commitments”, Pacheco said during the special debate on the 2021 ​​​​​​​budget.

He said this would only happen “in that case, and not simply by writing a blank cheque” for the transfer of €476 million to Novo Banco.