Benfica president Rui Costa ‘blacklisted’ by Bank of Portugal over €20 million loan default – Portugal Resident
Benfica president Rui Costa has reportedly been added to the Bank of Portugal’s Central Credit Register (CRC) – commonly referred to in Portugal as the banking system’s “blacklist” – following an alleged default on loans linked to a luxury residential development in Carnaxide.
According to Observador, the case involves more than €20 million in financing provided by Banco Montepio for the Dream Living development, a project launched in 2018 with a planned investment of €45 million.
Costa owns a 10% stake in 10 Invest, the company behind the project, and also acted as a personal guarantor for several of the loans granted by Montepio, the newspaper reports.
A source from 10 Invest told Observador it did not deny the default but stressed that the guarantees provided to Banco Montepio “far exceed the value of the loan”, ensuring the bank’s position is “robustly protected”.
According to the same source, around €7 million of the debt has already been repaid, although more than €15 million remains outstanding, including default interest and other charges.
The default reportedly began in May, and Observador says Costa is currently attempting to renegotiate the debt with Banco Montepio.
Previous dispute over development
The Dream Living project has previously been the subject of financial disputes.
In April, Portuguese magazine Sábado reported that former Benfica vice-president Luís Mendes had filed a legal action against 10 Invest over an alleged €500,000 debt.
According to the report, the amount had already been paid by the time the case became public.
Neither Rui Costa nor Banco Montepio had publicly commented on the latest reports at the time of writing.
