Novo Banco

Novo Banco: state commitments must be met

The president of the Portuguese Banking Association says that the Resolution Fund should continue to inject money into Novo Banco because “State commitments should be met”.

In an interview with Jornal de Negócios and radio Antena 1, Fernando Faria de Oliveira says that since there is a contract stipulating these cash injections, non-compliance would be “extremely negative” for Portugal’s reputation.

“State commitments have to be met. And since there is a commitment laid down in a contract, if the contract is broken, the consequences for Portugal would be extremely damaging,” he said when asked about payments from the Resolution Fund to Novo Banco.

Faria Oliveira also said that he would like to see disagreements and political arguments over the payments resolved.

On the issue of a new inquiry into the bank’s management, this time a public one, Faria de Oliveira again side-stepped the question but called on parliamentary MPs to act with caution and prudence in order to avoid the issue being “exploited by the media and politicians”, which could damage the sector’s reputation.