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Report: Caixa Geral de Depósitos misses €3B in restructuring plan target

PortugueseFinance Minister Mário Centeno said Caixa Geral de Depósitos SA fell short of a target inits restructuring plan by €3 billion, Reuters reported July 6.

Centenosaid it was too early to determine the amount of the recapitalization neededfor the state-owned bank, according to the report. Portugal has been in talkswith the European Commission over a recapitalization of Caixa Geral deDepósitos, whose balance sheet is weighed down by nonperforming loans, with aview to ensuring that any injection would not be regarded as state aid andwould not add to the country's budget deficit.

"Thereis a huge deviation from the business plan and restructuring plan that the previousgovernment managed with Caixa Geral de Depósitos, that reaches over €3 billion,"Centeno reportedly said, adding that it "is necessary to alter this pathbecause we need to reinforce [Caixa Geral de Depósitos]."

Centenohad said Portugalwants to recapitalize the lender using market instruments and not use publicfunds to plug the deficit.