Portugal's Finance Minister and the Governor of the Bank of Portugal both have been summoned to parliament at the request of the Left Bloc to explain the circumstances of the resignation of Vítor Bento and his management team, from Novo Banco.
"It has been alleged that there were disagreements between the management charged with restructuring Novo Banco and the Bank of Portugal’s policy objectives for a quick sale of the institution. Faced with this situation which has ensured BES still is in turbulence, and taking into account that Novo Banco is owned by the Resolution Fund which is funded with public money, more explanations are needed, as well as clarification of the goals of the government and the Bank of Portugal regarding Novo Banco" read the Left Bloc’s submission.
The Deputy Prime Minister, Paulo Portas, said that the Government will work to find the "best possible solution" to the problem of Banco Espírito Santo and Novo Banco and said that this whole issue has disrupted the Portuguese financial system.
Portas vowed to work on the problem to find the best possible solution, due to the importance to the economy and as the "reputation of the country is at stake."
A Goldman Sachs partner, António Esteves, said today that the sale of Novo Banco certainly will attract foreign investors because it is an opportunity and a stepping stone into the Portuguese market.
Alexandre Soares dos Santos, the former chairman of the Board of Directors of Jerónimo Martins, claims to know very little of what went on at Banco Espírito Santo, and does not want to know but said one thing is for certain, the crisis at BES "must have had impact on business” because companies already are feeling it.
"Companies already are complaining of a lack of access to credit, credit for the purchase of raw materials, for example," said dos Santos.
PM Passos Coelho agrees, saying today that the risk assumed by banks to help bailout BES will almost certainly have had a negative impact on investment in and growth of the Portuguese economy as it erodes the ability of banks to advance credit.
Vítor Bento is leaving Novo Banco with his reputation intact and his wallet bare as he will receive no compensation beyond his salary
Two months after being co-opted to take the helm at BES - which almost immediately was separated in the good bank/bad bank solution - Bento hands over to Eduardo Stock da Cunha without any golden goodbye, just a few months salary.
