The Central Bank of São Tomé and Príncipe (BCSTP) has cancelled the operation of the Banco Privado de São Tomé e Príncipe, BPSTP for “repeated breaches of the rules” and “credit portfolio degradation” – the governor, Hélio da Almeida, said on Thursday.
According to the Governor of the BCSTP, the decision was taken by the Board of Directors of the Central Bank, which decided to cancel the authorisation to operate BPSTP following “successive breaches of the provisions governing the São Tomé financial system.”
Giving assurances that the measure also aims to “safeguard the credibility of the financial system” Almeida said that “the institution’s regular portfolio will be transferred to other banking institutions operating in the São Tomé financial system.”
“All deposits will be reimbursed to holders without any additional costs,” said the governor adding that since 2013 there have been numerous constraints, including the deterioration of the loan portfolio with concessions out of line with the rules.
Last February, the Central Bank of São Tomé and Príncipe announced the opening of a public tender for the “total or partial sale of assets and liabilities” of Banco Privado de São Tomé and Príncipe, with the aim of “preserving financial stability” and “safeguarding the interests of taxpayers.” (macauhub)