Portugal’s state-owned CGD bank to reduce presence in Mozambique and Cabo Verde

The Portuguese state-owned bank Caixa Geral de Depósitos (CGD) will have to reduce its presence in Cabo Verde and Mozambique by the end of 2020, under the institution’s revised 2017-2020 strategy plan authorised by the European Commission, the Finance Ministry announced in a statement released on Thursday in Lisbon.

CGD is present in Mozambique via Banco Comercial e de Investimentos (BCI), with a 61.5 percent stake, with the Portuguese Banco BPI holding 35.67 percent, following the exit from its share capital of the Mozambican group Insitec in December 2017.

In Cabo Verde the Portuguese state-owned bank is present via Banco Comercial do Atlântico, market leader in the island country, with a stake of 52.5 percent, and Banco Interatlântico, where it controls 70 percent.

The plan to capitalise Caixa Geral de Depósitos using 3.9 billion euros of taxpayer money led to implementation of a strategy plan by the bank, which among other measures obliged it to leave four markets: France, Spain, South Africa and Brazil.

The Finance Ministry also reported that following contacts with the European Commission to modify CGD’s strategy plan, “the public bank will continue to maintain the retail operation in France,” where it counts 48 branches and more than 500 employees.

Because CGD returned to generating profits one year earlier than expected, the administration indicated it was ready to reconsider various commitments, a position Brussels has now accepted.

The units in Spain, South Africa and Brazil are now being sold. The off-shore units in Macau and the Cayman Islands have also been closed.

BNU Macau, Banco Caixa Geral Angola, BCI Moçambique and the branch in Timor were considered “strategic international operations” under the agreement covering the period up to 2020. (Macauhub)