Spain 
Italy 
Greece 
CGD to Pursue More Radical Cuts in NPLs
30 July 2018
In order to maintain its branch in France, the Caixa Geral de Depósitos opted to cut its exposure in Cape Verde and Mozambique.
Caixa Geral de Depósitos (CGD) established a new objective to reduce its exposure to NPLs after demands by the European Commission, deciding to change the international assets which are to be sold.
Negotiations between the Portuguese state and Brussels settled on a debt ratio of 7%, but Paulo Macedo’s management team wants to reduce that ratio further, the Jornal de Negócios reported. Last month, the non-performing loan ratio accounted for 10.5% of the portfolio. One of the objectives of CGD’s 2020 plan will be to converge with the European average.
Regarding the international assets, CGD will be able to maintain its branch in France, but with additional conditions imposed by Brussels. The value of the bank’s assets abroad cannot exceed 12 billion euros.
To comply, the bank chose to cut its exposure to Cape Verde by selling one of its two banks, and to Mozambique, where CGD will reduce its recently strengthened, though remaining above 50%.
Original Story: Economia Online
Translation: Richard Turner