The low level of savings of the Portuguese is one of the main problems in the country and it must be placed on top of the concerns, trying to put the families’ money at the service of the recovery of the economy. This is one of the conclusions of the interventions at the CMVM’s annual conference, with Pedro Castro e Almeida, the president of Santander, emphasizing that leaving money in demand deposits is the best way to lose money.
“It makes me confused as savings are not at the top of the priorities”, warned the president of Santander Totta, highlighting the low level of savings in Portugal, despite the rate being at maximum.
In a debate dedicated to investor protection, at the CMVM conference held within the scope of World Investor Week, Pedro Castro e Almeida stressed that “the best way to lose money is to leave money in sight deposits for the next 10 years, that rates will remain as they were in the last 5 practically negative and due to the effect of inflation, even low “.
Unlike other moderators, who warned of the need to implement tax benefits to stimulate savings, the president of Santander says that he is not a big “fan of increasing incentives”, noting that it is necessary to change the savings culture in Portugal.
Madalena Torres, executive president of Banco Best, also recognizes that “deposits have been increasing, but part of that money is in demand deposits”, warning that this “is extraordinarily worrying, because there are no incentives for this savings”.
A solution that could help to reverse this trend and allocate part of that savings to other products would, in the opinion of Madalena Torres, the creation of “funds aimed at small investors and private domestic savings, with some form of State guarantee, would allow to direct these funds for Portuguese companies that will have to face reindustrialization “.
João Pratas, president of the Portuguese Association of Investment, Pension and Heritage Funds (APFIPP), argues that benefits are the only way to channel savings into other products, asking for the application of tax regimes for funds identical to other products, as insurance, which enjoy more favorable taxation after a certain period.
Gabriela Figueiredo Dias, president of the CMVM, also highlighted, in the opening speech of the conference, the need to implement a strategic plan to boost the capital market, reinforcing the regulator’s efforts in this process.
“Portugal needs a strategic plan for the capital market and this must be framed in the national resilience and recovery strategy that is being designed”, defended Gabriela Figueiredo Dias. The CMVM president, who applauded the Government’s initiative to create a task force to analyze the OECD’s recommendations for boosting the capital market in Portugal, added that this strategic plan “cannot fail to have the investor at its center , aiming at the generation of trust, the creation of opportunities for families and the productive channeling of their savings to the economy and our companies, at the service of a better Portugal “.
João Nuno Mendes, the Secretary of State for Finance, said that he expects the task force to analyze the proposed dynamization measures to have a leader later this month, arguing that this working group “will take advantage of this environment that invites change”.
More than working for the national reality, João Nuno Mendes argues that the task force should prepare a response to the local reality that we know, but rather anticipate a new reality, in which countries are speeding up the union of capital markets .