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  • 18 OCTOBER 2024
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Macedo advocates caution with public guarantees, including in housing

The CGD President, Paulo Macedo, said today that it is positive to have measures to facilitate access to housing, but that it is necessary to be cautious with public guarantees.

Macedo advocates caution with public guarantees, including in housing
Notícias ao Minuto

19:23 - 16/05/24 por Lusa

Economia CGD

"It is positive to have a housing package with measures on the demand and supply side", said Macedo at the press conference to present the public bank's accounts for the first quarter (profits of 394.5 million euros).

The manager also stated that CGD is available to finance housing construction within the scope of a public and private program.

As for the public guarantee for young people who need housing loans (in which the State guarantees part of the loan amount), Macedo stated that "there must always be caution with guarantees and public money".

The Government Program (PSD/CDS-PP) provides for a public guarantee for the purchase of a house by young people using bank loans, but no official details are yet known, despite news in the press indicating that this public guarantee will have limits on income and price.

Today, the governor of Banco de Portugal (BdP), Mário Centeno, considered that the public guarantee is "a complex issue" and that there have been no formal contacts between the Government and BdP.

Regarding the Government's measure to reduce IRC - the executive wants to reduce this tax, currently at 21%, at a rate of two percentage points per year, with banks being among the companies that pay the most IRC taking into account profits -, Paulo Macedo stated that he supports a gradual reduction in the IRC rate (corporate income tax) but also that there should be a minimum rate extending the incidence of companies that pay this tax.

"I am in favor of a mandatory minimum rate, I have many doubts about the number of companies that pay nothing. And I think we should gradually move towards a lower IRC rate", he said, stating that he believes that "in this way, the revenue could be maintained".

The manager (who was director-general of taxes between 2004 and 2007) stressed that this is important so that revenue can be maintained "unless a way is found to reduce public spending, and I don't see how that will be done".

Still in response to journalists, when asked about Águas de Portugal (of which CGD is a shareholder), the manager rejected any type of pressure from the previous Government (PS) for CGD to propose the distribution of dividends from Águas de Portugal to the State.

"Do you think this Board of Directors looks like it can be pressured? It has never happened to me anywhere I have worked, neither in taxes nor here in seven years has a minister ever told me what to do", he said.

Read Also: CGD wants to pay an additional 300 million in dividends for 2023 (Portuguese version)

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