Montenegro unveils state sovereign fund for strategic stakes
Portugal’s government plans a sovereign fund to hold and buy stakes in strategic sectors, a move that could expand state intervention in key parts of the economy.
Portugal will create a sovereign fund, managed within the IGCP treasury agency to allow the state to take equity stakes in strategic companies, Prime Minister Luís Montenegro said at the close of his PSD party congress. The plan points to a broader state role in sectors such as energy, banking, communications and infrastructure.
Montenegro said the fund would be “an instrument of autonomy and intervention of the State in strategic sectors” and would also serve as a savings vehicle for future generations. He said it would bring together stakes already held by the state and others later deemed strategic and capable of generating a financial return for the public administration.
He did not give details on the fund’s size, financing sources or launch timetable. But he said the government does not rule out using it in areas including airport infrastructure management if concession holders fail to meet their obligations.
In the same speech, Montenegro also gave further details on a previously announced disaster fund, saying it would include one sub-fund for seismic risk and another for extreme climate events. He also said the Portuguese artificial intelligence project known as Amália is ready and will be presented next month, alongside plans for a new legal framework for renting and performance incentives in the civil service.
ECO has learned from a government source that the vehicle will be funded annually through the state budget and managed by IGCP, the public debt agency.
ECO also learned that Caixa Geral de Depósitos, the state-owned bank, will not be included in the fund because the vehicle is expected to hold only minority equity positions. TAP, which is in the process of being privatised but in which the state is expected to retain 50.01% of the capital, will also remain outside the fund.
It is still unclear what will happen to Parpública, the state holding company that owns stakes including more than 80% of water utility AdP and about 8% of Galp. According to information obtained by ECO, the Galp stake will be transferred to the new fund, which would leave the Portuguese state with several separate entities holding corporate stakes, alongside the role of Banco de Fomento.
Originally published at Eco.pt
