Banks "mark" clients if they have "financial difficulties" and renegotiate credit (with João Santos Carvalho)

«'"There were several indications that banks were telling clients that credits were going to be marked as restructured in the CRC. And this is not true, in fact, which is why the Bank of Portugal decided - and rightly so - to make this clarification," says João Santos Carvalho, partner in Banking and Finance Law at SRS Legal. However, adds the specialist, "the clarification of the Bank of Portugal regarding the CRC is not complete because it does not mention the issue of prudential requirements and the capital of banks.

It is true, says the lawyer, that "this is a matter that, in the first place, interests the banks and not so much the clients". "But, before the institution, the entry into PARI, obviously, may have a consequence in the credit risk analysis that is made of that client," says João Santos Carvalho.

"The clarification from the Bank of Portugal regarding the CRC is not complete, because it does not refer to the subject of prudential requirements and bank capital. This is a matter that, in the first place, is of interest to the banks and not so much to the clients. But before the institution, entering into PARI obviously may have a consequence on the credit risk analysis that is made of that client."»