EN ECB -PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 30 March 2012  
on implementin g measures  relating to recapitalisation  
(CON/20 12/23) 
 
Introduction and legal basis  
On 26 March 2012, the European Central Bank (ECB) received a request from the Portuguese Minister of 
State and for Finance  for an opinion on a  draft  ministerial order implementing Law 63 -A/2008 of 
24 November on the recapitali sation of credit institutions  (hereinafter the ‘draft ministerial order’) . 
The ECB’s competence to deliver an opinion is based on Ar ticles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and on the third and sixth  indents of Article  2(1) of Council 
Decision  98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regard ing draft legislative provisions1, as the draft ministerial order  relates to the Banco de 
Portugal and to rules applicable to financial institutions insofar as they materially influence the stability of 
financial institutions and markets . In accordance wit h the first sentence of Article 17.5 of the Rules of 
Procedure of the European Central Bank, the Governing Council has adopted this opinion.  
 
1.  Purpose of the draft ministerial order  
1.1 The draft ministerial order establishes the implementation  procedur es for Law 63 -A/2008 of 
24 November, as amended and republished by Law No  4/2012 of 11 January (hereinafter the ‘Law 
on recapitali sation ’), on which the E CB adopt ed Opinion CON/2011/952. The Law on 
recapitalisation aims at reinforcing the resilience of the banking sector by establishing the 
conditions and procedures for  providing tempor ary public support to viable credit institutions 
having their head  office in Portugal, but delegated t o the Government essential implementation 
details.  
1.2 The draft ministe rial order defines (i) the terms and conditions for public investment and 
disinvestment, including the criteria f or the remuneration of the investment and the corporate 
bodies of the credit institution , (ii) the additional terms and elements of the recapit alisation plan, 
and (iii) the threshold from which the State may exercise the voting rights attached  to its 
shareholding in the credit institution.   
 
                                                 
1  OJ L 189, 3.7.1998, p.  42.  
2  Available on the ECB’s website at www.ecb.europa.eu.  
ECB -PUBLIC  
2 2. General observations  
2.1 The ECB generally welcomes the draft ministerial order, which is  overall  appropriate for restoring 
the solvency of viable banks in the current economic and financial crisis context3.  
2.2 As stated in Opinion CON/2011/95, the ECB notes  that re capitalisation through the purchase by the 
State of capital instruments eligible for Cor e Tier 1 should be made exclusively in cash , and not by 
means of bonds or other debt instruments issued by the State.   
2.3 To enable banks to meet additional capital requirements by the end of June 2012,  as recommended 
by the European Banking Authority on  8 December 20114, it should be ensured that the national  
legal framework governing the recapitalisation of credit institutions , including the ministerial order , 
is finalised without delay .  
 
This opinion will be published on the ECB’s website.  
  Done at F rankfurt am Main, 30 March 2012.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
3  See notably ECB opinion CON/2011/95 . 
4  See EBA Recommendation on the creation and supervisi on oversight of temporary capital buffers to restore market 
confidence (EBA/REC/2011/1)  on the EBA’s website at www.eba.europa.eu.