Portugal: State development bank ‘has not had hoped-for impact’ – minister
Portugal's minister for territorial cohesion argued in parliament that the Banco Português de Fomento has not had the hoped-for impact and has "many shortcomings" - and promised to relaunch it.
Portugal’s minister for territorial cohesion argued in parliament on Wednesday that the Banco Português de Fomento, a state-owned bank set up to foster the modernisation of businesses and the development of the economy, has not had the hoped-for impact and has “many shortcomings” – and promised to relaunch it.
“Since it was founded, Banco de Fomento has not had the impact on the Portuguese economy that we had all hoped for,” said the minister, Manuel Castro Almeida, in response to members of the parliamentary committee monitoring the implementation of the Recovery and Resilience Plan (PRR) for spending European Union post-pandemic recovery funds and Portugal 2030 (PT 2030), the plan for spending regional development funds. “This government has no idea of letting the Banco de Fomento collapse and we are concerned about relaunching it so that it has the impact it is supposed to have.”
The minister also emphasised that some people think that the Banco de Fomento is a “resource” for the banking system to provide funding when traditional banks do not have it.
He clarified that the institution rather plays an important role when it comes to financing very long-term projects that do not fit into the traditional banking system.
Castro Almeida also said that economic agents are already noticing some improvements in the way Banco Português de Fomento operates, but he emphasised that it still has “many shortcomings” that the government is endeavouring to improve.