BPN losses

The total losses incurred by troubled private bank BPN amount to 1.8 billion euros, equal to half the estimated cost of building Lisbon’s new international airport.

The shocking truth of the bank’s financial black hole was revealed last week to parliament by the bank’s Vice President, Norberto Rosa, who said that he had found the bank’s situation was “unsustainable”.

Norberto Rosa took over his post at the beleaguered bank in November last year to try and sort out the mess after its controversial nationalisation.

He explained to parliamentary deputies sitting on an enquiry commission that the 1.8 billion euros had “not yet been integrated into the bank’s accounts for 2008 despite the bank already facing considerable losses overall at BPN SA and offshore BPN Cayman, IFI and Banco Insular.

The government has created a four billion euro credit line to help recapitalise those financial institutions that need it.

There are a number of entities interested in eventually buying BPN, including Caixa Geral de Depósitos as well as a number of unspecified banks in Brazil and France.

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