CTT CEO says OE's 3.5 billion target for issuing savings certificates is at risk

“The target of 3.5 billion euros set in the state budget for the issuance of savings products, such as savings certificates, could be jeopardized if the government does not make this product,” says João Pinto, CEO of CTT, in an interview with Conversa Capital – Antena 1 / Jornal de Negócios. more attractive.

In an interview with Antena1 and Jornal de Negócios, João Pinto considered that at the current rate, CTT is still “very far” from being able to reach its quota of 3.5 billion, and in order to recover these savings, he aims to provide batteries for the second semester, “in an effort It should be coordinated with the government and IGCP.”

The President of CTT believes that the change of government, in this area, will harm the dynamics that existed in the market, and says that in order to recover now, it is necessary to act in two dimensions: raising the limit per account beyond the expected amount of 50 thousand euros and offering greater profitability for savings certificates. . This is because “it is good for the government to encourage saving.”

Specifically with regard to the negative balance of net contributions and the destination given to savings, João Pinto believes that this part is heading to deposits, and therefore believes that in the second half of the year, with interest rates falling and public debt increasing debt costs in institutional deposits, the situation reverses and certificates become able to compete again.

Moreover, he is not afraid of competition from banks that can now sell savings certificates, because, he says, it is an uninteresting business compared to other businesses that CTT owns.

It is worth noting that the Ministry of Finance, led by Fernando Medina, issued a decree to end the marketing of the Series E of savings certificates and create the new Series F, with a lower base interest rate. In May last year, the government announced the end of Series E in savings certificates (which had already reached a wage rate of 3.5%) and, accordingly, launched a new series with a lower wage rate (up to 2.5%).

The government took this decision after economist João Moreira Rato said, in an interview with CNN Portugal, that the state should stop issuing savings certificates.

The economist said in the interview that it may be necessary to “stop issuing savings certificates” with a maximum interest rate of 3.5%, considering that the country was able to finance itself at better rates in global markets, without relying on early loans. payment, and that the Republic cannot be overly dependent on one type of financing instrument.

The economist's position ended up being controversial, because at the time he was still non-executive chairman of Banco CTT, and because the government put an end to the series days after the interview.

In this interview, João Pinto admits that in 5 years the postal service may be left, and at this point, he believes that the country will have to change the current model, based on the franchise of universal postal service.

The CTT CEO points out that the decision is up to the government, as well as the need to maintain the 2,300 points of presence across the country, because the cost of sending the message would be very high.

Moreover, he adds that CTT has no intention of downsizing the existing distribution network because even though the contract does not allow it either, it is comfortable with the jobs acquired which are now being monetized by channeling new jobs.

As for the future, CTT wants to assert itself as an e-commerce logistics operator, says the manager: “In the future, we will deliver orders and sometimes letters,” says João Pinto.

The CTT CEO also spoke about the quality indicators that the Post Office is committed to complying with as a postal service franchisee. CTT expects that the new president of Anacom, Sandra Maximiano, will present, together with the government, “a proposal that meets market realities and is compatible with economic sustainability.”

Regarding the political situation in the country, and asked about the possibility of eventually forming a government, João Pinto points out that instability is always the enemy of investment, but he believes that “the most worrying thing is the idea of ​​​​the government in the period.”