Costa blames banks for support not reaching companies

in News · 21-05-2020 11:17:00 · 2 Comments
Costa blames banks for support not reaching companies

The CDS-PP have highlighted that companies are still waiting for the support created by the State to mitigate the effects of the covid-19 pandemic, with the prime minister stating that companies “are waiting for banks ”.

During the biweekly debate that took place in the Assembly of the Republic, in Lisbon, deputy Cecília Meireles considered that the credit lines “unfortunately have only been talk for most companies because the money, in fact, has not yet arrived”.

“It is not because businessmen do not need it, or because they were cautious, it is because the measure was poorly designed, it took more than a month to reach companies”, said Cecília Meireles.

In the reply, the Prime Minister indicated that "the Portuguese mutual guarantee company has already approved more than five billion euros of guarantees, and that the bank only contracted 1.5 billion euros of guarantees".

“The banks are not waiting for the Portuguese mutual guarantee society, the banks are waiting for what I don't know. Now, there is something I know, companies need the funds, they are waiting for banks, they are not waiting for the Portuguese society of mutual guarantee ”, stressed António Costa.

In the previous intervention, in response to the PCP, the executive's leader had pointed out that the problem must be "in the relationship between the bank and its customers" and that is what should be clarified.

The CDS MP also pointed out that “Portugal is the only country in Europe that does not disclose either macroeconomic projections or public finance projections”, and considered that “this means that the Government does not know what is happening in the economy, nor does he seek to know ”.

“Since last week, apparently, we were busier in discussing whether or not the Finance Minister should remain in place than I would be discussing a recovery plan for the country, I think maybe this week”, now it would be better to discuss “where the country is going and not where the Minister of Finance is going, ”said Cecília Meireles.

For this reason, the deputy wanted to know “when will the Government finally present a plan for the recovery of the economy”, that “looks at competitiveness, lower taxes, and show signs of confidence in private initiative, contrary to the that has been happening lately ”.

António Costa pointed out that in the discussion of the Stability Program, which took place last week in parliament, “it was explained the reasons why the Government did not present its scenario at this time” and added that the “economic and social stability programme” will be presented in the “supplementary budget framework” in June.

“After this first phase, which was an emergency phase, we now need a programme that ensures the stabilisation of the economic and social situation, and creates the conditions for us to be able to prepare a programme for economic recovery and recovery when sanitary conditions permit, when the conditions of the global economy allow it and when we have definitively designed - or at least a sufficiently concrete outline - of the European Union's financing instruments ”, he stressed.

In Costa's view, designing “a programme for the recovery and relaunching of the economy” without these instruments “is a good rhetorical or advertising exercise, but it is an instrument of very low efficiency and usefulness for Portuguese citizens and companies”.


Comments:

From the March i tried for credit line but Millennium bcp Martim Moniz branch alwayes said to me they have submitted my credit proposal for my business and its analizing..but finally i found they did not submitted it.
even though i have good business record and my account is a business account and i use their multibanco.
Banking system there is highly recist.

by Rajib Al Mamun from Lisbon on 22-05-2020 04:39:00

There is a simple truth, 'banks have sticky fingers'. There is an understandable logic in asking the banks to handle the funds as they know their clients. The problem is that the banks will find any excuse NOT to loan the funds and keep them on their books. The old truth remains, 'banks will only lend you an umbrella if its not raining'.

by Fred from Lisbon on 21-05-2020 01:44:00
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