5 September 2019- Novo Banco’s exposure to troubled loans held by large debtors increased by 753 million euros over the last six months, according to the Bank of Portugal.
As at 31 December 2018, Novo Banco had an exposure of more than 5.2 billion euros, compared to 4.4 billion euros in June of that same year. The data for 30 June 2018 showed that Novo Banco had 33 major debtors with debts in excess of 43.3 million euros. That figure rose to 36 debtors by December, with losses rising to €4.151 billion from €3.542 billion six months earlier.
Even so, the bank managed to reduce its impairments by €240 million while recovering an additional €271 million in loans, partially offsetting the increased losses.
Novo Banco is required to report the data to comply with Portugal’s Big Debtors Act, which states that large debtors that go into default must be reported by any bank receiving state aid. Novo Banco received a new capital injection of €1149 billion from the Resolution Fund in May.
Original Story: Jornal de Negócios – Rita Atalaia
Photo: António Cotrim/Lusa
Adaptation/Translation: Richard D. K. Turner