Portugal CTT to advance with post bank establishment

Portugal’s post operator CTT-Correios de Portugal plans to advance with the project for the establishment of a post bank in the country with or without the agreement of Portugal’s largest bank Caixa Geral de Depositos (CGD), it was reported on November 24, 2005.

An agreement signed with CGD in January 2003 tied CTT with the state bank concerning the establishment of a post bank. CTT’s former board of directors announced at the beginning of 2004 its plans to launch a post bank in collaboration with Portuguese financial group Banif, but Portuguese Government recently renounced the model.

CTT’s chairman, Luis Nazare, reportedly kept holding negotiations with CGD, but did not exclude the possibility for a single project or a project with another financial partner for the establishment of the bank.

[Editor’s note: CGD was CTT’s first partner in the project for a post bank in Portugal, the Portuguese News Digest reported. CGD and CTT established the bank Banca Postal in 2002, but later CTT sold its stake to CGD. After Banca Postal ceased operation in 2004, CGD kept a preference right on a future post bank of CTT. CTT is obliged to present the project for the future post bank to CGD, and the bank should decide whether it would participate in it or not. If CGD decides to give up its preference right, this might result into a compensation of up to 3.5 mln euro ($4.1 mln) to be paid to the state bank.]

http://www.diarioeconomico.com,www.aiidatapro.com

Source: Diario Economico, AII Data Processing Ltd.