Probe for Por­tu­gal’s largest bank

The Myanmar Times - - International Business -

POR­TU­GAL has launched a probe into the state-owned Caixa Gen­eral de De­pos­i­tos bank, with lo­cal me­dia re­port­ing that the in­ves­ti­ga­tion would cen­tre on al­le­ga­tions of mis­man­age­ment and ru­inous in­vest­ments.

The Ex­presso weekly said the in­quiry will fo­cus on lead­er­ship at the bank, Por­tu­gal’s largest by as­sets, post2000, in­clud­ing loans is­sued be­tween 2005 and 2010 dur­ing for­mer so­cial­ist prime min­is­ter Jose Socrates’ time in of­fice.

Mr Socrates was ar­rested in Novem­ber 2014 and has been un­der house ar­rest since last Oc­to­ber.

Pros­e­cu­tors prob­ing CGD are as­sess­ing “sub-prime loans worth tens or even hun­dreds of mil­lions of eu­ros ... in­vest­ments in the Brazil­ian mar­kets and ru­inous credit fa­cil­i­ties for Span­ish com­pa­nies”.

In Au­gust the Euro­pean Com­mis­sion and Por­tu­gal an­nounced a 5 bil­lion euro (US$5.6 bil­lion) deal to bail out CGD, in­clud­ing a 2.7 bil­lion euro in­jec­tion of state funds.

Por­tu­gal’s banks have been un­der huge stress af­ter the col­lapse of the coun­try’s ma­jor lender Banco Espir­ito Santo in 2014 due to years of risky lend­ing. –

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