Privatization of the insurance department of the State bank CGD

The Portuguese government has decided to privatize the entire insurance department of the state bank Caixa Geral de Depósitos (CGD) with three insurers Fidelidade, Multicare and OK Teleseguros. This cession is done under pressure from sponsors. The sale of 95% of the capital of these insurance companies should be made preferably to the same bidder. The remaining 5% will be set aside for employees. This move will take place before the end of 2013.

Portugal has committed to proceed to privatizations in return for a financial assistance of 78 billion EUR (100 billion USD) from the European Union and the International Monetary Fund.