Novo Banco has asked for 598 million euros in support (this year is due to losses in 2020), but Finance is skeptical about this, and they think it may be a lot.
The Ministry of Finance stated in the new “Stability Report” that this year’s public expenditure to support Novo Bank is expected to reach 430 million euros, but it is expected that the budget will be completely cancelled in 2022 (consistent with the unchanged policy). Procedure (PE) 2021-2025), It will be available on the parliamentary website starting from April 16th (Friday).
According to the Environmental Protection Agency, this is a “unchanged measure”, “one-off” (only happens once, so the burden must be reduced in 2022), but the government believes it is still in the “adoption” stage. Because the financial endowment for doing so was defeated by the opposition in the final vote of the national budget in 2021.
In other words, the budget does not actually exist in the OE, but the government has said that it will find a way to obtain funding because, according to the administrator, the state intends to be a “good guy.” Fulfill the contract with Lone Star (the majority owner of NB) and the settlement fund (in the public domain). The tool is funded by the bank, but there is not enough funds to withstand what BES left before the continuous funding shortage.
In this year’s OE proposal, the French government hoped to set a budget of 476.6 billion euros for the national budget, but it failed because with the support of PSD, the opposition parties (PCP and BE) blocked the measure. Like finance, the Public Finance Committee also adopts this scheme, because with money, the contract will be fulfilled. What? I don’t know yet.
However, after OE approval, Novo Banco stated that more taxpayer funds may be needed after all: 598 million euros may not be able to balance the capital ratio, but Finance believes that the account may not be ideal.
Now, in this new “stability plan”, the government has reduced the acronym that it intends to reserve to NB at nearly $477 million, lowering the threshold.