Portugal’s government on Thursday approved the creation of the Financial Development Institution, to be known as the Banco do Fomento, and the new bank’s statutes, with the declared aim of its helping tackle the current dearth of finance for small and medium-sized enterprises.
According to a statement released after the day’s cabinet meeting, which lasted over seven hours, “the institution [will] lay stress on intervention of a wholesale nature, operating in close partnership and complementarity with the financial system.”
The government aims for the new bank to be operational before the end of the year.
The formal request for authorisation for its creation was submitted in May to the Bank of Portugal, which had six months to give its opinion.
The new institution will have an initial capital of some €100 million, and will aim to increase its capitalisation to €10 billion.
The inaugural board is to be chaired by the former managing director of BCP Millennium’s investment banking arm, Paulo de Azevedo Pereira da Silva.
JNM/ARO // ARO.
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