According to Lusa, the Bank of Portugal (BoP) has until Thursday 23rd of May to send an ‘extraordinary report’ to parliament detailing all large debtors who have also benefited from public aid. The new law, which came into force in February this year states that the central bank has ‘100 calendar days’ to submit details of credit applications and public funding up to twelve years before the new law came into force.
The new law means that large debtors of Caixa Geral de Depósitos, BES / Novo Banco, Banif, BPN, BCP and BPI banks will be officially named. The report is thought to comprise of at least two documents. The first will be an open document providing ‘aggregated information’ which should be available on the Bank of Portugal’s website, while the second report will contain confidential information pertaining to problematic credits, troublesome assets and anything that has affected the bank’s financial integrity. It would also seem that the BOP is also waiting for information from the individual banks themselves before they can submit their report.
In defence, the BoP has opined that 100 working days is not enough time to gain all the information they need, especially as individual banks do not report all the relevant information with regards to high financing and loans. They have also stated that if current protocols have to change, then the way they disclose information will need to be altered.
The February ruling aims to create greater transparency on any banks use of public aid (whether this aid is granted directly by the State or through the Bank Resolution Fund), with the Bank of Portugal having to publish on its web page ‘anonymous and aggregated information about any large debtors.’ It will also have to send detailed information to parliament.
In light of recent events could this be seen as too little too late.
info at madeira-weekly.com