The expansion of the distribution network of savings bonds (CA) to banks aims to “stimulate competition” and reduce distribution costs, but so far no bank has expressed interest in selling themsaid the Ministry of Finance.
Responding to questions from Lusa, an official source of the Ministry of Finance, it points out that the possibility of CAs being registered “on the physical or digital networks of any financial or payment institution registered with Banco de Portugal” and that for this target has been stated by the Agency of Treasury and Public Debt Management (IGCP), “responds to a proposal from the IGCP”, and also complies with “comments made by the Court”.
This IGCP proposal was “justified with the aim of stimulating competition in the distribution of savings certificates, thus encouraging the expansion of distribution channels for investors, as well as reducing distribution costs”.
“However, commercial banking has not yet shown interest in the distribution of savings bonds”, in addition, “the IGCP has not received any proposals for the distribution of these products by institutions other than the current one (CTT)”, he says. the ministry headed by Fernando Medina.
The Ordinance of June 2, which suspended the sale of ‘Series E’ CAs and initiated the ‘Series F’, available from today, stipulates that these public debt securities can be subscribed to in physical networks (branches) and bank fingerprints, joined CTT and Burger areas.
In early February, IGCP President Miguel Martín said at a parliamentary hearing at the Budget and Finance Commission (COF) that the Portuguese state pays CTT between 0.585% and 0.26% for subscriptions to savings or treasury certificatesand it was IGCP’s goal to expand the distribution network for these products.
“In terms of subscription, we pay CTT 0.585% of the subscriptions up to a certain amount, then we pay 0.26% for the subscription,” Miguel Martin said when asked about the cost, referring to the interest in expanding the network of distributors. to also circumvent the bank’s lack of interest.
Lusa also questioned the Treasury Department about the cost of selling these products in Citizens’ Spaces and the number of “Series E” subscriptions through this channel in 2022 and the first five months of this year, but has not yet received a response . .
The end of the ‘series E’ AC (with a maximum basic rate of 3.5%) and its replacement by the new series (with a maximum basic rate of 2.5%) led to criticism from the opposition parties, namely BE and PCP, who accuse the government of giving in or doing the banks a favoran accusation rejected by the government.
Source: DN
