Africa-Press – Cape verde. The National Social Security Institute (INPS) refutes allegations of a lack of transparency in a deposit auction. The institute guarantees that banks were provided with all the necessary elements to understand the rules of the process.
In a note issued this Friday afternoon, the INPS states that the clarifications raised were all provided in the proposal opening session and after the results were communicated.
“Therefore, all competitors were on equal terms and aware of the rules of this process”, reads the statement.
The clarification comes after the Bank of Cape Verde (BCV) announced that it recommended the country’s commercial banks not to participate in an auction of deposits from the National Social Security Institute until instruments are created to mitigate liquidity risk.
BCV stated that it only became aware of the auction on December 12, 2023, when it received a complaint signed by the majority of participating banks, alleging “lack of transparency in the process”.
The INPS denies the accusations and explains that the benches invited to participate in the process had timely access to the pertinent, necessary and relevant information to participate in the auction.
“In addition to the evaluation criteria being presented in the invitation letter, during the opening session of the proposals relating to the first auction, all doubts of the bank representatives were clarified and recorded in minutes that everyone signed”, he says.
The National Social Security Institute highlights that the calculation formula to determine the winner of the auction contains cumulative criteria, with the interest rate entering the equation, with a weight of 55% and prudential and risk ratios with a weight of 45%. . The same source states that the process was set up, ensuring that the mobilization of funds for the constitution of the deposit was distributed proportionally according to the deposits on order of the INPS, available among the participating banks, so that no institution would respond, individually, for the entire auction price.
“Indeed, for the reasons already mentioned, we are surprised and categorically refute the allegations of lack of transparency”, he states.
“INPS reassures its users and the population in general that its actions are supported solely and exclusively with the aim of better serving and guaranteeing with greater security the profitability of mandatory social protection resources”, he concludes.
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